"Banks do not create money out of thin air: central banks do." I think that's not exactly true. The reality is that banks make loans and then search for the re

"Banks do not create money out of thin air: central banks do." I think that's not exactly true. The reality is that banks make loans and then search for the reserves. So, in practice, are the credit departments in commercial bank who decide if new money is created. Central banks can influence this by making the creation of new money cheaper or expensive. http://www.economonitor.com/lrwray/2013/08/15/banks-dont-lend-reserves-who-knew-mmt-thats-who/ http://www.economonitor.com/lrwray/2013/08/15/banks-dont-len... To anyone interested in these issues, I recommend Modern Money Theory ( http://neweconomicperspectives.org/modern-monetary-theory-primer.html http://neweconomicperspectives.org/modern-monetary-theory-pr... ).