20:1720:17, 17 November 2015diffhist−18
m
Money creation
Economists do not create money, nor account for it. That is the role of banks, privately or publicly-owned, that are part of the Monetary System, which is quite distinct from economics.Tag: Visual edit
15:2715:27, 14 November 2015diffhist−3
Fractional-reserve banking
It's important to differentiate between the valid circulating notes issued by goldsmiths were for gold owned by others and held as deposits, and the fraudulent notes, issued as loans bearing interest, which led to fractional reserve banking.Tag: Visual edit
15:0415:04, 14 November 2015diffhist+699
Money creation
Quoted the Bank of England's text on Money Creation, which differs from economic textbooks. Being the monetary authority, the Bank of England is clear that money is created as a deposit when lending.Tag: Visual edit
14:2914:29, 14 November 2015diffhist+410
m
Fractional-reserve banking
Important to note that reserves are a small percentage of the money that banks create as debt. Otherwise, it is misleading the reader into believing that banks actually loan out money held as deposits.Tag: Visual edit
20:1720:17, 17 November 2015diffhist−18
m
Money creation
Economists do not create money, nor account for it. That is the role of banks, privately or publicly-owned, that are part of the Monetary System, which is quite distinct from economics.Tag: Visual edit
15:2715:27, 14 November 2015diffhist−3
Fractional-reserve banking
It's important to differentiate between the valid circulating notes issued by goldsmiths were for gold owned by others and held as deposits, and the fraudulent notes, issued as loans bearing interest, which led to fractional reserve banking.Tag: Visual edit
15:0415:04, 14 November 2015diffhist+699
Money creation
Quoted the Bank of England's text on Money Creation, which differs from economic textbooks. Being the monetary authority, the Bank of England is clear that money is created as a deposit when lending.Tag: Visual edit
14:2914:29, 14 November 2015diffhist+410
m
Fractional-reserve banking
Important to note that reserves are a small percentage of the money that banks create as debt. Otherwise, it is misleading the reader into believing that banks actually loan out money held as deposits.Tag: Visual edit