Fractional Reserve Banking

The evolution of banking marked a crucial turning point in modern finance, enabling massive scale creation and circulation of money.

Explore the evolution of money from physical precious metals to abstract liabilities and assets, shaped by technological advancements, financial innovation, and policy changes.

Explore the causes and consequences of the Bank Run of 1834, a critical event in English financial history highlighting the dangers of unchecked lending and the importance of liquidity.

Explore the evolution of monetary theory from traditional gold standards to modern fiat currency regimes and understand how innovations like fractional reserve banking and central bank control have shaped the global economy.

The Swedish Riksbank pioneered fractional reserve banking in 1656, combining commercial payment services with lending to drive economic growth.