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Creating money out of thin air is exactly what a bank does. It's basically the definition of a bank: https://www.bankofengland.co.uk/-/media/boe/files/quarterly

• mgaunard 3y ago
  A national/central/reserve bank is very different from a normal bank. To such a bank, national tender is actually pretty much a bond, and therefore they can issue more of it. No such bank sells mortgage products to retail customers.
  • hgomersall 3y ago
    The first sentence of that document makes reference to money creation happening by commercial banks making loans. It then goes on to explain much of the detail. The document is all about commercial banking. Central banks operate exactly the same way as commercial banks, just the money they create flows in a different circuit.