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-3
votes
0answers
40 views

After an IPO, does the increase in stock price provide more money to the company? [duplicate]

Companies go public so they can raise money by a funding round. My understanding is that the IPO is for this reason. They offer a certain amount of shares and raise X amount of capital, and the share ...
6
votes
2answers
449 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 ...
12
votes
3answers
688 views

Do Banks Cause Inflation? What are other possible causes?

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 ...
0
votes
2answers
121 views

The life cycle of money

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" ?
3
votes
1answer
80 views

Why is seigniorage different for paper notes and coins?

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 ...
18
votes
10answers
9k views

Why do governments borrow money instead of printing it?

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, ...
14
votes
3answers
357 views

Is there any way to know how much new money the US is printing?

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?
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 ...