> Every time the FED lends someone money, it basically prints it. It is the commercial/retail banks that create money through credit: > Most of the money in t

> Every time the FED lends someone money, it basically prints it. It is the commercial/retail banks that create money through credit: > Most of the money in the economy is created, not by printing presses at the central bank, but by banks when they provide loans. * https://www.bankofengland.co.uk/explainers/how-is-money-created https://www.bankofengland.co.uk/explainers/how-is-money-crea... * 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... While central bank reserve rates do have impact, there are countries have have no reserve requirements (UK/England being one of them). The transmission mechanism of monetary policy is… complicated: * https://www.ecb.europa.eu/mopo/intro/transmission/html/index.en.html https://www.ecb.europa.eu/mopo/intro/transmission/html/index... * https://www.chicagofed.org/publications/working-papers/2012/wp-05 https://www.chicagofed.org/publications/working-papers/2012/...