News for hackers. Stuff that matters.
Re:Inequality, Interest Rates, Aging, and the Role of Centra... by cs702 on Friday December 30, 2022 @08:31AM (#34184822)
This isn't even wrong. Newly created money isn't given to recipients. It's either borrowed by financial institutions, who must repay it with interest, or used to purchase government and agency bonds from private holders in the open market.

When a financial institution borrows from a central bank, the financial institution records an increase in financial obligations (a credit to Liabilities), along with a corresponding increase in cash & equivalents (a credit to Assets). All of this is in the bank's balance sheet, easily verifiable (e.g., by reading annual reports).

What you're suggesting (somehow getting central banks to lend newly created money to individuals even if they don't ask for it) makes no sense.

There are no comments on this comment yet.