Central bank net purchases of any asset, or services for that matter, tend to create money.
In either event, it is impossible to create money unless a corresponding demand already exists.
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With the power to create money, Mr Draghi owns the biggest gun of all.
The nice thing about the Federal Reserve is that it can create money without requiring Congressional approval.
The merchant banks would extend credit but would not create money.
And when crisis hits, decision-making shifts to a tiny handful of people at treasuries and central banks who can spend or create money.
Equity and corporate-bond markets have also been boosted by quantitative easing (QE), the process whereby central banks create money to purchase (mostly government) bonds.
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Below, one sees how the industrious create money for good purpose.
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Currently the ECB cannot create money, nor can it bailout nations.
To repeat, nothing supercharges a money supply more than a banking system willing to create money by pyramiding loans, investments and deposits on top of its excess reserves.
Take it away from them, but leave them the power to create money and control credit, and with a flick of a pen they will create enough to buy it back.
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As we have discussed in the past, nothing supercharges a money supply more than a banking industry willing to create money by pyramiding loans, securities and deposits on top of its reserves.
Also, the central bank and the (fractional reserve) banking system would face a nearly irresistible temptation to use their ability to create money to hold the deflation at bay as long as possible.
As we have discussed several times in this space, nothing supercharges a money supply more than a banking system willing to create money by pyramiding loans, investments and deposits on top of its excess reserves.
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The paper argues that we should eliminate legal restrictions on private currency issuance to allow private firms to create money backed either by Federal Reserve notes or commodities like gold, a position I completely agree with.
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In Britain the annual growth rate is higher (6.4% in December), but David Owen, an economist at Jefferies International, estimates that quantitative easing (QE), whereby central banks create money to buy assets, has been boosting the figure by an annualised rate of 10%.
Many of us learned in economics 101 that banks create money by depositing the proceeds of a loan in the borrower's checking account, but the total money created is controlled by central banks through the minimal reserves that banks must maintain with them, the fractional reserve system.
What this means is that eurozone taxpayers, and especially those in Germany and France, will be more directly exposed to future emergency loans that may be required by the likes of Italy and Spain than would be the case if part of those loans was provided by an ECB able to create money.
It is important to remember that the UK has had significant monetary advantages, compared with the more rigid inflexible eurozone, in the post-crash years - a currency, sterling, that could and has fallen to reflect weak conditions here, and a central bank able to price money and create money to meet the UK's challenges.
All the Fed does is in essence create new money to give the seller.
"I've always known we have to create some money to spend some money, " he said.
The solution, on this view, is for the Fed to create more money and give it to people.
In a fractional reserve banking system, banks are permitted under law to create deposit money out of thin air.
It would not work to allow private entities to create base money dollars.
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The rise of virtual currencies has been exemplified by bitcoin, which lets Internet users create new money by solving complex math problems.
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Closed Monetary system, at will no one can just create more money than the allowable amount that CAN be created by mining.
Although the total supply of gold grows very slowly, central banks can create new money with just the click of a mouse.
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When the Bank of England decided last week not to create more money to support the recovery, some of us wondered why they didn't offer an explanation.
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