PHIL1122 - 8.9 Where does money come from? and Types of loans

Front

Where does money come from?

a)

b)

Back

a) central bank

b) private banks - credit creation

Front

Central bank - creates money by _ and _

Back

printing bills and minting coins

Front

Central bank - only _% of all money in circulation

Back

3-5%

Front

Central bank - they use _ (QE)

Back

quantitative easing

Front

Quantitative easing is when central bank injects _ (like government bonds)

Back

digital money by buying assets

Front

Quantitative easing is when central bank injects digital money by buying assets (like government bonds)

--> to increase _

Back

money supply

Front

Private banks - where a _ comes from

Back

vast majority of money

Front

Private banks - where a vast majority of money comes from

--> by creating _ when they make _

Back

by creating deposits when they make a loan

Front

Private banks

Who benefits most? Dietsch argues that money creation mostly benefits _

Back

people who own assets

Front

Private banks

Who benefits least? _

Back

people who do not own assets