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I'd really like to understand this process. Is there a real world example of government employee adjusts a particular figure on a particular bit of software. Th
by bennysonething 4y ago
I'd really like to understand this process. Is there a real world example of government employee adjusts a particular figure on a particular bit of software. That then somehow sends money to a particular bank?
- petrocrat 4y ago1. Interest on reserves increases the rate of growth of commercial bank reserve balances held at the Fed: https://fred.stlouisfed.org/series/IORB https://fred.stlouisfed.org/series/IORB 2. How Do Primary Dealers Make Money? Primary dealers buy bonds directly from the government and then resell them to clients and investors at a slight mark-up. This small difference in price is how primary dealers earn a profit. https://www.investopedia.com/terms/p/primarydealer.asp https://www.investopedia.com/terms/p/primarydealer.asp
- bennysonething 4y agoThanks
- metaphor 4y agoRecommend picking up a copy of Central Banking 101[1] for a gentle introduction; the basic mechanics of fractional reserve banking are explained in Chapter 2. [1] https://www.amazon.com/Central-Banking-101-Joseph-Wang/dp/0999136747/ https://www.amazon.com/Central-Banking-101-Joseph-Wang/dp/09...
- nine_k 4y agoBank of England details the process of money creation: https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/money-creation-in-the-modern-economy https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/m...