People create money ‘out of thin air’. Not banks!
Historically, commercial banks have been thought of as institutions that take money from savers and lend it to borrowers. That is, as financial intermediaries. In recent times, this idea has been turned on its head. Academics and central banks now acknowledge that, because new money is created by commercial banks when they make new loansbanks …
People create money ‘out of thin air’. Not banks! Read More »
