[20240519]

I thought the weird thing about mortgages is it is new money that expands the money supply.

[Scarblac]

Not necessarily, that's only if it's financed by bank accounts that continue being money themselves. If they're financed by large investors, it's not new money.

(it's money if its extremely liquid - the bank account holders can still do things with their invested money)

[hkt]

That's not correct: cash that is not in circulation is not part of "broad money" in the same way, so it is still right to say that money is created when a mortgage is issued if that mortgage is backed by large investors. At least as I understand it, investments in financial instruments are not usefully regarded as money.

[xnx]

Every interest loan does this.