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>Banks are the only ones who get to decide who benefits from the creation of new money How about we use the term "financial system" rather than banks. And in
by aguyfromnb 7y ago
>Banks are the only ones who get to decide who benefits from the creation of new money
How about we use the term "financial system" rather than banks. And in that sense, how is that different than:
"a governing body that decides how much new money needs to be introduced every year.
Except that it's mostly private (though heavily regulated), dynamic and market driven. You trust the legislators to figure out how much money is needed annually? Yikes.
Also, I'm not sure why you focus on "new money". Money is fungible and the world is awash in it. We have negative rates through most of Europe, for crying out loud! "New money" goes to where it is demanded.
- jhoechtl 7y agoYou answer that for the US where the fed system is indeed is indeed mostly private. Not so in most parts of the rest of the civilized world.
- occamrazor 7y agoIt is a commonly believed myth that the Fed is mostly private. The people in charge of monetary policy are appointed by government.
- aguyfromnb 7y ago>Not so in most parts of the rest of the civilized world. We must live in totally different places if you'd prefer monetary policy be established by politicians. I'll take the academics, for better or worse.