Click here to read a recent Bank of England Quarterly Bulletin article on how commercial banks create money in the modern economy. A video interview with one of the report's authors is below and an excellent critique of the article's discussion of QE can be found at Uneasy Money.
According to Robert Shiller , speaking at Davos, Bitcoin is a perfect example of a bubble - story here . Shiller sees Bitcoin as a backwards step in the evolution of money. George Selgin , a free banker, takes an opposing view - click here . Although he doesn't believe that Bitcoin is money, he sees its development as a fascinating turn in the evolution of money. In particular, he lauds the fact that Bitcoin production is constrained and cannot be infinite. There is a short video below where Bitcoin explain how it works.