będzie po angielsku bo po polsku prawdę mówiąc nie ma nic ciekawego w tym temacie
The Biggest Myths in Economics
1) The government “prints money”.
The government really doesn’t “print money” in any meaningful sense. Most of the money in our monetary system exists because banks created it through the loan creation process. The only money the government really creates is due to the process of notes and coin creation. These forms of money, however, exist to facilitate the use of bank accounts. That is, they’re not issued directly to consumers, but rather are distributed through the banking system as bank customers need these forms of money. If the government “prints” anything you could say they print Treasury Bonds, which are securities, not money. The entire concept of the government “printing money” is generally a misportrayal by the mainstream media
2) Banks “lend reserves”.
This myth derives from the concept of the money multiplier, which we all learn in any basic econ course. It implies that banks who have $100 in reserves will then “multiply” this money 10X or whatever. This was a big cause of the many hyperinflation predictions back in 2009 after QE started and reserve balances at banks exploded due to the Fed’s balance sheet expansion. But banks don’t make lending decisions based on the quantity of reserves they hold. Banks lend to creditworthy customers who have demand for loans. If there’s no demand for loans it really doesn’t matter whether the bank wants to make loans. Not that it could “lend out” its reserve anyhow. Reserves are held in the interbank system. The only place reserves go is to other banks. In other words, reserves don’t leave the banking system so the entire concept of the money multiplier and banks “lending reserves” is misleading.
http://www.pragcap.com/biggest-myths-in-economics/
co na ten temat uważacie na ekonomii uczą czegoś co w rzeczywistości już nie istnieje od lat 80 :/
The Biggest Myths in Economics
1) The government “prints money”.
The government really doesn’t “print money” in any meaningful sense. Most of the money in our monetary system exists because banks created it through the loan creation process. The only money the government really creates is due to the process of notes and coin creation. These forms of money, however, exist to facilitate the use of bank accounts. That is, they’re not issued directly to consumers, but rather are distributed through the banking system as bank customers need these forms of money. If the government “prints” anything you could say they print Treasury Bonds, which are securities, not money. The entire concept of the government “printing money” is generally a misportrayal by the mainstream media
2) Banks “lend reserves”.
This myth derives from the concept of the money multiplier, which we all learn in any basic econ course. It implies that banks who have $100 in reserves will then “multiply” this money 10X or whatever. This was a big cause of the many hyperinflation predictions back in 2009 after QE started and reserve balances at banks exploded due to the Fed’s balance sheet expansion. But banks don’t make lending decisions based on the quantity of reserves they hold. Banks lend to creditworthy customers who have demand for loans. If there’s no demand for loans it really doesn’t matter whether the bank wants to make loans. Not that it could “lend out” its reserve anyhow. Reserves are held in the interbank system. The only place reserves go is to other banks. In other words, reserves don’t leave the banking system so the entire concept of the money multiplier and banks “lending reserves” is misleading.
http://www.pragcap.com/biggest-myths-in-economics/
co na ten temat uważacie na ekonomii uczą czegoś co w rzeczywistości już nie istnieje od lat 80 :/
