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Here is what I want to know. What role does the Greek central bank play? What is the fractional reserve rate in Greece? What is the interest rate set by the cen
by arca_vorago 12y ago
Here is what I want to know. What role does the Greek central bank play? What is the fractional reserve rate in Greece? What is the interest rate set by the central bank? How is the money generated in the first place and what are the return rates and restrictions on that method (eg: in US it's treasury bonds)?
I'm increasingly convinced that central banks operate only marginally on the interest of the country they serve, enough so they don't ruin everything, but instead are primarily (and counter to what many economists will say) working for their own profit. Keep in mind that profit is actually usually in the form of political and economic power, but not money directly. Of course I'm coming from the American perspective where I think the Federal Reserve Act was passed on suspicious circumstances by suspicious men for suspicious reasons and that congress should stick to the constitution and control coin itself and not allow some outside potentially foreign entity to control our money system, but hey, every economist I know just says trust the Fed so they must be right.