Inequality, Interest Rates, Aging, and the Role of Central Banks

Re:Inequality, Interest Rates, Aging, and the Role of Centra... by bennysonething on Friday December 30, 2022 @04:17AM (#34183370)

I'd really like to understand this process. Is there a real world example of government employee adjusts a particular figure on a particular bit of software. That then somehow sends money to a particular bank?

[ Parent | on HN ]

Re:Inequality, Interest Rates, Aging, and the Role of Centra... by petrocrat on Friday December 30, 2022 @05:23AM (#34183717)

1. Interest on reserves increases the rate of growth of commercial bank reserve balances held at the Fed: https://fred.stlouisfed.org/series/IORB

2. How Do Primary Dealers Make Money? Primary dealers buy bonds directly from the government and then resell them to clients and investors at a slight mark-up. This small difference in price is how primary dealers earn a profit. https://www.investopedia.com/terms/p/primarydealer.asp

[ Parent | on HN ]

Re:Inequality, Interest Rates, Aging, and the Role of Centra... by bennysonething on Saturday December 31, 2022 @09:43AM (#34196834)

Thanks

[ Parent | on HN ]

Re:Inequality, Interest Rates, Aging, and the Role of Centra... by metaphor on Friday December 30, 2022 @05:30AM (#34183744)

Recommend picking up a copy of Central Banking 101[1] for a gentle introduction; the basic fractional reserve banking mechanics is explained in Chapter 2.

[1] https://www.amazon.com/Central-Banking-101-Joseph-Wang/dp/09...

[ Parent | on HN ]

Re:Inequality, Interest Rates, Aging, and the Role of Centra... by nine_k on Friday December 30, 2022 @06:41AM (#34184141)

Bank of England details the process of money creation: https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/m...

[ Parent | on HN ]