Uploaded August 2016 | Updated September 2026, 3 weeks ago
Warren Mosler talking about the difference between bank-created money and government created money.
In our floating exchange rate system, the textbook explanation of the money multiplier does not apply. Instead, loans create deposits, and the Central Bank must supply any necessary reserves after the fact in order to be able to hit their interest rate target.
See the whole video here: youtube.com/watch?v=ba8XdDqZ-Jg
Like Deficit Owls on Facebook: facebook.com/DeficitOwls
Warren Mosler talking about the difference between bank-created money and government created money.
In our floating exchange rate system, the textbook explanation of the money multiplier does not apply. Instead, loans create deposits, and the Central Bank must supply any necessary reserves after the fact in order to be able to hit their interest rate target.
See the whole video here: youtube.com/watch?v=ba8XdDqZ-Jg
Like Deficit Owls on Facebook: facebook.com/DeficitOwls
