The role of commercial banks in money creation is made more clear by the fact the Fed is primarily interested in creating demand deposits rather than cash. This creates a larger foundation on which commercial banks can pyramid a multiple creation of bank deposits, or "checkbook money."
Thanks to their adoring media, politicians create crises and then blame businesses for them. And the political "solutions" are worse than the original problems.
Welcome to Whose Economy Is It, Anyway?, where the rules are made up and the dollars don’t matter. Or at least that seems to be the view of the Yellen regime.
It would be instructive to see how many banks would survive if the massive governmental props were finally taken away.
Welcome to Whose Economy Is It, Anyway?, where the rules are made up and the dollars don’t matter. Or at least that seems to be the view of the Yellen regime.
Bentham began as a devoted Smithian, but over time he became more and more statist.
The proposed central bank digital currencies are not a new and convenient high-tech form of money. Instead, they are yet another power grab by government authorities, continuing the shameful history of government corruption of money.
What at first seem like gifts from the state (handouts for some at the expense of others) lead to unfortunate events that cannot be stopped once begun.
The empty shopping mall: a story of how government actions created a huge malinvestment in western Pennsylvania.
Government interference into money creation and production harms the economy in a number of ways, including skewing the organization of division of labor.
