How central banks create money | Tamil series| Decoding Money| episode 3

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Decoding Money- Tamil series- This is all about the history of money in Tamil
Episode 3:
Central banks started to boom around the world, in each countries there are different problems and reasons were there in the birth of central banks.
In this episode, we discuss three important cases, related to the birth of central banks.
1.People started to face problem when there is lot of different banknotes circulating around the same country.
2.British government were in a financial crisis in 1694 because of their loses in wars.
3. When the America was the civil war during the early 1900's, Abraham Lincoln, then president of USA. Needed money to manage the problems in the country. He went the banks for loans. But they demanded a very high interest rates.This made lincoln to realise that banks are functioning only for their own profit and not for the people. So government under released a new currency for USA as greenbacks. But after several days, Lincoln was assasinated. After that new government has been formed, greenbacks went out of circulation. Again the old bank notes started circulating.But the people realized how these banks are making tons of profits from their work. So the bankers came up with the idea of federal reserve system.
In india RBI started its functioning by 1935.
So how these banks create money is explained at last of this video.
The explaination is non-technical, its just made for people to understand how does central banks creates money.

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#tamilseries #RBI # centralbanks
Tamil Series
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