Thursday, 6 November 2014
UK Parliament to debate money creation.
The large majority of money in circulation is created by private banks when they make loans. I.e. governments and central banks only issue a small portion of money.
Is that right? Milton Friedman thought not. And nor did several other household name economists, past and present, e.g. Irving Fisher, Merton Miller and Laurence Kotlikoff.
The debate is on 20th November.