Tagged Questions
9
votes
2answers
209 views
What is the “Bernanke Twist” and “Operation Twist”? What exactly does it do?
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 ...
6
votes
2answers
450 views
Who creates money? Central banks or commercial banks?
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 ...
11
votes
1answer
156 views
WSJ article about CFDs - am I missing something?
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 ...
7
votes
4answers
194 views
Fractional Reserve Banking and Insolvency
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 ...
5
votes
2answers
248 views
Do banks keep their reserves at the Fed in cash or can they be kept in US Treasuries?
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 ...
14
votes
5answers
522 views
Is “Fractional Reserve” banking real?
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 ...
