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-1
votes
1answer
42 views

How the money can be destroyed when some country or corporation defaults [closed]

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 ...
-2
votes
1answer
93 views

How Is the Price of a Stock Determined?

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 ...
0
votes
0answers
95 views

About stamp scrip - Are they useful?

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 ...
10
votes
3answers
1k views

Who creates money? Central banks or commercial banks? [closed]

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 ...
14
votes
3answers
2k 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 ...
1
vote
2answers
159 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
418 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 ...
23
votes
10answers
18k 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, ...
15
votes
3answers
576 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?