Timeline for How could monetary policy be affected if cash "gifts" to consumers were more frequently used?
Current License: CC BY-SA 3.0
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| Aug 19, 2015 at 0:33 | comment | added | dismalscience | @gerrit— Your question is a bit out-of-scope and thus might justify a stand-alone question, but: borrowing/lending can, but does not always, create money. Whether or not it does has to do with whether the lending is intermediated by the banking system (i.e., if I borrow $100 from you, practically speaking nobody will let you treat that as a financial asset, and it thus won't result in money creation) and whether the monetary authority chooses to accommodate more lending, as noted above. A good overview: bankofengland.co.uk/publications/Documents/quarterlybulletin/… | |
| Aug 18, 2015 at 23:58 | comment | added | gerrit | it has simply been borrowed from one person and given to another — I thought that borrowing did create money? Could you clarify? | |
| Aug 9, 2015 at 16:55 | history | edited | dismalscience | CC BY-SA 3.0 |
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| Aug 9, 2015 at 13:58 | comment | added | dismalscience | @LamonteCristo— see edit | |
| Aug 9, 2015 at 13:52 | history | edited | dismalscience | CC BY-SA 3.0 |
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| Aug 9, 2015 at 13:52 | comment | added | makerofthings7 | How does this contrast with the current means of increasing the money supply? | |
| Aug 9, 2015 at 13:48 | history | answered | dismalscience | CC BY-SA 3.0 |