Can private banks create money?

3 answers


ANSWER #1 of 3

Yes. But if they did it would cause inflation, and that would drive the prices of goods and services down, creating less revenue for them...


ANSWER #2 of 3

Yes, but this can cause inflation to increase in demand for supply and this is called an inflationary gap.

Can private banks create money?

ANSWER #3 of 3

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Can banks create money?

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