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by zarzavat
1606 days ago
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It doesn't really make sense to think of it like that. "Money" is simply the value of what's in everybody's accounts, plus cash but that's a tiny percentage. When a bank makes a loan, new money is created. When a loan is paid off, money is destroyed. The role of the central bank is to keep enough money flowing in the system to create economic activity. Too much money and you get speculative bubbles. Too little money and the economy grinds to a halt. |
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