The US is printing a lot of money, but a lot of that money is theoretical and not really printed. Stocks are a way this happens, if you bought 10 shares at $10 and a week later they are worth $15, $50 got created. Loans are another way money gets created with a fractional reserve system, $1, 000 in savings can create $10,000 in loans.
The US is printing a lot of money, but a lot of that money is theoretical and not really printed. Stocks are a way this happens, if you bought 10 shares at $10 and a week later they are worth $15, $50 got created. Loans are another way money gets created with a fractional reserve system, $1, 000 in savings can create $10,000 in loans.
I’m not an economist but I don’t think money gets actually created in either of your examples, the money just changed hands in either case.
A good answer! Thank you! Geez, econ 101 boggles my mind
It’s really finance not econ.