Re: The truth is out: money is just an IOU, and the banks are rolling in it
Has anyone of the macro-financial experts here even bothered to read the original article (and not just THE MONEY IS NOT REAL sensationalism from the OP link)?
http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2014/qb14q102.pdf
And if you can't read scientific articles - here is what is the main statement of this one:
http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2014/qb14q102.pdf
And if you can't read scientific articles - here is what is the main statement of this one:
Quote
As a by-product of QE, new central bank reserves are created. But these are not an important part of the transmission mechanism. This article explains how, just as in normal times, these reserves cannot be multiplied into more loans and deposits and how these reserves do not represent free money for banks.