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Hermel | 2 years ago

Technically, the state does not have the monopoly on money. The majority of the money supply is created by commercial banks through credit. But the commercial banks are so strictly regulated through capital requirements that the de facto decision about what purposes the banks are allowed to print money for is under centralized control. The ECB even thinks about using capital requirement rules to nudge banks towards green investments, which would be a departure from their mandate of monetary stability.

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