Central Bank
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Your Bank Makes Its Own Money

Your bank is not a money lender. Their loans department is a money maker; a creator of brand new money. And while it is often thought that central banks can control the money supply in circulation, this is untrue. It is customers that create the demand for deposits at private banks when they seek a bank loan, and since central banks are primarily concerned with the stability of the payments system, they will always stand ready to ensure the private banks have enough reserves or liquidity to clear their payments. Come discuss this with us on Twitter https://twitter.com/PEGSInstitute Instagram https://www.instagram.com/pegsinstitute Facebook https://www.facebook.com/PEGSInstitute Watch on Odysee https://odysee.com/@PEGSInstitute:c Support us on Patreon https://www.patreon.com/PEGSInstitute Sources: Exchange Settlement Account Policy - Reserve Bank of Australia - https://rba.gov.au/payments-and-infrastructure/esa/ How the Reserve Bank Implements Monetary Policy - Reserve Bank of Australia - https://youtu.be/1bBizpkB8dU Why Minsky Matters by L Randall Wray John Maynard Keynes (1975) by Hyman Minsky Treasury, Reserve Bank of Australia and Money - Dr Steven Hail (Part 2) - https://www.youtube.com/watch?v=scIlDd6lTOI&t=944s The role of bank deposits in Modern Monetary Theory - Bill Mitchell http://bilbo.economicoutlook.net/blog/?p=14620 How is money created? - Bank of England (2020) https://www.bankofengland.co.uk/knowledgebank/how-is-money-created Credits: Written by PEGS Institute Spoken by Andrew Johnson Edited by Jackson Winter Icons made by MD Badsha Meah, www.wishforge.games, Charlie, icon king1, Raj Dev, fengquan li, Free Preloaders, Gayrat Muminov, Muhammad Haq from www.freeicons.io Strength by Nathaniel Smith, Safety Net by irene hoffman, ATM by Nawicon from the Noun Project All other graphics created by Jackson Winter Music Mia by Jeremy Blake 1940's Slow Dance (Sting) by Doug Maxwell, Media Right Productions