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The vast majority of dollars are created by private banks, not the US government.
by carnitine 5y ago
The vast majority of dollars are created by private banks, not the US government.
- qeternity 5y agoNot anymore, and the impact on money supply is very different. But I understand what you mean, the issue is that central bank rates and facilities combined with reserve ratios are the primary determinants of money creation (well, and GDP growth). So the transmission mechanism winds up being private banks, but it's still at the behest of the US Government.