04/30 Development Loans
Development Loans
Replying to the query “Do personal banks issue money today?”, he wrote:Though banks do not have the privilege to issue bank notes, they can create money as bank deposits when they lend cash to firms, or buy securities. The most important thing to recollect is that when banks lend cash they do not necessarily take it from any person else to development loans. This credit was made out of nothing ( something central banking organizations think the right to do as “banks of last resort” ), and the sums sophisticated were great.
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