Recently I read some basics about how banks perform money expansion. My knowledge of economics is minimal so I would like to test my understanding of this mechanism on a simple hypothetical example. I ...
I was reading the article Bernanke’s Twist Sharpens Year-End Anxiety Over Stimulus and In the article it says The Fed on June 20 extended its Operation Twist program to swap $267 billion in ...
Which of these is a better description of money creation: Scenario 1: Central bank creates money Customer A deposits $10 at his bank. Customer B wants to borrow $100. The bank is in good standing ...
In this WSJ article, it comments Traders held a net $22.6 billion in bets that the dollar will appreciate, a gain of 31% in net wagers over the previous week and the largest such position since ...
When talking about fractional reserve banking, if we take a contrived example. 1,000 people deposit US$1,000. Deposit total are $1m. Then the bank subsequently loans US$ 900,000 via a series of ...
This chart at the St. Louis Fed has a lot of people worried about future inflation, because it represents idle money that, when lent out, could eventually flood the world with 10 - 12 trillion new ...
A good friend of mine keeps telling me how all money is created from debt, with only a tiny fraction coming from the bank's actual reserves. Which he refers to as "Fractional Reserve Banking". As he ...