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A comment on Bitcoin study: Period of exclusivity encourages early adopters. Parent comment

Re:Bitcoin study: Period of exclusivity encourages early ado... by hidenotslide on Friday July 14, 2017 @03:57AM (#14768285)
The primary mechanism that "creates" money is ordinary banks loaning money in the fractional reserve system. The Federal Reserve does not have as much control as people think.
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Re:Bitcoin study: Period of exclusivity encourages early ado... by RobertoG on Friday July 14, 2017 @08:42AM (#14769307)
You are right. Central banks can only influence the process, but what really decide the creation or "extinction" of money is the demand of credit in commercial private banks.

In a way, the system is self-regulated.

In fact, all the "fractional-reserve" thing is a myth. Banks loan when they see the opportunity of profit, and then they search for reserves. Not the other way around.

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