Opinion is divided among analysts as to whether the Bank of England is likely to push ahead in its next monetary policy meeting with more monetary stimulus - likely to come in the form of further purchases of government debt with newly createdmoney, or Quantitative Easing.
Remember that even under a government monopoly currency system, money is still created not by government, but by financial institutions, which bring dollars into existence through the act of extending credit.
And Mexican government officials have created matching programs aimed at using the money Mexicans sent home to fund public works projects south of the U.S.-Mexico border.
The amount of deposit moneycreated matches the amount of government securities taken off the market if banks fail to make use of their new reserves resulting from their new deposits, which has been the case lately.
In an earlier phase of capitalism, Britain and the earlier European commercial powers (the Dutch Republic, Sweden) created central banks either to lend money to the government or to stabilise the convertibility of trading currencies into gold.