A helpful visual representation of money flows between government and private sector. The actual explanation of the thought process can be found here: part 1 and part 2. It is obviously a conceptualisation that simplifies much of what is going on. I therefore recommend also having a look at Money is created out of nowhere (Dominic Frisby), Money as debt (Paul Grignon) and Money as Debt II – Promises Unleashed (Paul Grignon).
- What is happening to extreme poverty?
- Summary of ‘Development in Bad Waters’