Acton Institute Powerblog

What do bond markets do?

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Note: This is post #90 in a weekly video series on basic economics.

Most borrowers, such as individuals and small businesses, borrow through banks. But larger institutions can also borrow from a different financial intermediary: the bond market.

In this video by Marginal Revolution University, Alex Tabarrok explains what bonds are, what they do, how they’re rated, and how the bond markets work.

(If you find the pace of the videos too slow, I’d recommend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)

Click here to see other videos in the Introduction to Economics series.

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Joe Carter Joe Carter is a Senior Editor at the Acton Institute. Joe also serves as an editor at the The Gospel Coalition, a communications specialist for the Ethics and Religious Liberty Commission of the Southern Baptist Convention, and as an adjunct professor of journalism at Patrick Henry College. He is the editor of the NIV Lifehacks Bible and co-author of How to Argue like Jesus: Learning Persuasion from History's Greatest Communicator (Crossway).