3 ms·
Money Creation in the modern economy [pdf]
- nabla9 7y agoThis is how money creation works in textbooks. Not how it works in real world. Fractional reserve banking as instrument for money creation has lost it's effectiveness during 2000s. This has not been how major central banks create money a some time and is not likely to come back in foreseeable future either. Instead of going trough savings accounts, all major central banks use open market operations to create money.