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Ordinary banks create money everyday when they issue loans.
by napsec 3y ago
Ordinary banks create money everyday when they issue loans.
- kylebenzle 3y agoSmall banks can create money but only the Federal Reserve "sets the price" of money. The latter is arguably much more important.
- napsec 3y agoThe fed has tools they use to influence the value of money, that's true and part of their core mandate. But it's a massive oversimplification to say that they set the price of money.