T?lis B?aunsBrauns Orig Libau Tālis
"If governments could print money themselves, they would surely put out too much of it, and the resulting inflation would throw the economy into chaos. Institutions such as the Bank of England or US Federal Reserve were created to carefully regulate the money supply to prevent inflation." /www.theguardian.com/commentisfree/2014/mar/18/truth-money-iou-bank-of-england-austerity
"What the Bank of England admitted this week is that none of this is really true. BoE summary: "Rather than banks receiving deposits when households save and then lending them out, bank lending creates deposits" — "In normal times, the central bank does not fix the amount of money in circulation, nor is central bank money 'multiplied up' into more loans and deposits." In other words, — it's backwards. When banks make loans, they create money. This is because money is really just an IOU. The role of the central bank is to preside over a legal order that effectively grants banks the exclusive right to create IOUs of a certain kind, ones that the government will recognise as legal tender by its willingness to accept them in payment of taxes. There's really no limit on how much banks could create, provided they can find someone willing to borrow it." /www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2014/qb14q102.pdf
Printed copy · Anthology Volume 7, page 72
