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Yes, when banks issue mortgages, they create money. When a non-bank (you, for instance) issues a mortgage, new money isn't created. When counting how much mon
by radford-neal 4y ago
Yes, when banks issue mortgages, they create money. When a non-bank (you, for instance) issues a mortgage, new money isn't created. When counting how much money there is, you count the bank balances, not the mortgages.
- native_samples 4y agoBut non-banks by and large don't issue mortgages, or if they do they're pseudo-banks that make the loan and then turn around and immediately sell it to a bank.