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BIBLIOGRAPHY

Money creation in the modern economy

Bank of England — Michael McLeay, Amar Radia, Ryland Thomas

Claims Supported by This Source

  1. Banks are not intermediaries that lend out deposits; lending creates deposits.
  2. Central bank money is not multiplied into loans.
  3. 97% of broad money consists of bank deposits (UK, 2014).
  4. QE initially increases bank deposits and creates reserves as a byproduct. Reserves are not free money for banks.
  5. The quantity ultimately depends on the central bank's monetary policy (interest rates).

How to read the verification levels. 'Read' means the material was read in its entirety. 'Bibliography and abstract confirmed' means the bibliographic information and abstract were verified. 'Via course material' means the source was referenced through the main text of a book or a country's monetary history. The text hash is the SHA-256 of the main text from the original source page, excluding tags and whitespace, used to detect if the material has been altered.