3 ms·
I learned in economics 101 that although banks are individually responsible for making the money, the overall supply is ultimately controlled by the interest ra
by whatshisface 5y ago
I learned in economics 101 that although banks are individually responsible for making the money, the overall supply is ultimately controlled by the interest rate and reserve requirements. Both are set by the government. The free market determines who the money is supplied to, but it doesn't determine the money supply.