As far as i know for every dollar/euro/yen in the money supply pool there is a corresponding IOU in a bank or central bank. My question is how the system can track down and withdraw the excessive ...
From what I understand, the stock price is based on supply and demand. For example, if a stock that was priced at $0.01 was bought buy an investor who spent $5.00 (leaving him with 100 shares), it ...
Today I was reading an article on the guardian and it more or less suggested the usage of stamp scrip. To my understanding stamp scrip is a piece of paper that has a nominal value in dollars, on ...
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 ...
Some people believe that inflation is caused by an increase in the money supply when the banks print more notes engage in fractional reserve lending. Is this correct? As I understand it, when there ...
Is all the money created by a central bank destroyed after a period of time ? ie : is all the money in the system debt or is there an amount of money that exist "forever" ?
Wikipedia defines Seigniorage for paper notes and metal coins. Why is seigniorage for paper money not just face value - production cost? I can understand using just the interest rate in the age of the ...
This question is raised in the movie Money as Debt (at time index 29:00). The answer that immediately pops to my head is "because printing money causes inflation". However, according to this movie, ...
There is a lot of talk about the Fed printing money. Is there any way to know how much new money is being printed and when?