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-1 votes

Are bailouts destabilizing the global economy?

Are bailouts destabilizing the global economy? Not necessarily. In fact in a short run they indisputably stabilize economy. That is I do not know any serious economist who would think that not ...
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0 votes

Bank runs, deposit guarantees, and moral hazard

Usually the government effectively guarantees 100% of deposits anyway when push comes to shove. For example, with SVB, the US government quickly came out with a statement that depositors will be made ...
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0 votes

How would a Central Bank Digital Currency be different from a private bank deposit?

These could actually create significant changes compared to current system (e.g. see this the Economist article or more academic overview of this in Sinelnikova-Muryleva 2020, Panetta 2018 or Achord ...
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2 votes
Accepted

Money Creation Confusion

First, it is important to note that not all countries in the world have exactly the same monetary system. I will focus predominantly on how things work in US and EU. Other places might have some ...
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1 vote
Accepted

What aspects of Money Creation in the Modern Economy are no longer correct

Sections that would have to be modified significant (I ignored all small changes) way are: Section: Money creation in reality. To be more specific paragraphs 3-5 (which is 60% of that sub-chapter). ...
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4 votes

Money Creation Confusion

@Mick probably offered the best answer by linking the BOE paper. I'll try to address your questions more directly. Point 1) It is an outdated and simplistic model. It assumes loans, which are ...
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1 vote

Money Creation Confusion

There are a wide variety of things you can read that purport to explain our monetary system. It has been a controversial area. May I suggest you read the paper "Money Creation in the Modern ...
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-1 votes

What would happend if the total quantity of money get fixed?

Yes prices would tend to decrease in such scenario. Deflation would lead to unnecessary unemployment, especially during times of economic downturn. Productivity depends on technological work and ...
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