[napsec]

Ordinary banks create money everyday when they issue loans.

[kylebenzle]

Small banks can create money but only the Federal Reserve "sets the price" of money. The latter is arguably much more important.

[napsec]

The fed has tools they use to influence the value of money, that's true and part of their core mandate. But it's a massive oversimplification to say that they set the price of money.