3 ms·
> Money is not zero sum. It is created and destroyed as loans are made and repaid. For some definitions of money. Definitely not true of M0.
by nordsieck 4y ago
> Money is not zero sum. It is created and destroyed as loans are made and repaid.
For some definitions of money. Definitely not true of M0.
- CraigJPerry 4y agoAre you sure? M0 includes reserves - as in money deposited at the central bank by commercial banks. Reserves are increased by quantitative easing, the source of the additional reserves is nothing other than a decision.