Just as bank lending creates money, paying back bank loans destroys money. Money is also created or destroyed by banks purchasing or selling debt assets such as

Just as bank lending creates money, paying back bank loans destroys money. Money is also created or destroyed by banks purchasing or selling debt assets such as government bonds. https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf https://www.bankofengland.co.uk/-/media/boe/files/quarterly-...