www.zeroo.org

To understand the financial crises that the world has been going through you need to understand what money is, so I start there. I go on to examine how banks lend and borrow money. Then I look at the crucial part played by the 'bond market' which is used by governments and companies to raise the money to cover their expenditure. After that, I explain the financial relationship between a Government which has to spend and raise money and their Central Bank which helps them to do it. Finally I look at how the economic climate changes and why the world has been experiencing a series of financial crises.Money, Currencies, Exchange RatesMoney is denoted in currencies which are controlled by their governments. In the US it is the dollar; in the eurozone of 17 governments it is the euro; in China it is the rimini; in the UK it is the pound. The euro is an anomaly since it is not controlled by a single government (more about that later).