3 ms·
> The bank is not printing money new money, no matter how many times this idea gets repeated by people who are, ironically, pumping crypto coins that were print
by simula67 2y ago
> The bank is not printing money new money, no matter how many times this idea gets repeated by people who are, ironically, pumping crypto coins that were printed out of thin air.
It is now widely accepted that bank lending produces new money[1][2]
[1] https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy https://www.bankofengland.co.uk/-/media/boe/files/quarterly-...
[2] https://www.youtube.com/watch?v=K3lP3BhvnSo https://www.youtube.com/watch?v=K3lP3BhvnSo
- Agingcoder 2y agoYes. That’s how it was taught to me years ago, that’s how it’s understood in the banking industry as well, incl the private sector. From a large eurozone bank : https://group.bnpparibas/en/news/money-creation-work https://group.bnpparibas/en/news/money-creation-work
- hgomersall 2y agoThere's an inordinate amount of nonsense being espoused in this thread, when the answer is in that first link. I can only assume it's the miseducation that economics textbooks perpetuate.