Creating Money

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Title: Creating Money

Essay Details:

Subject: Business

Author: Roger W

Date: February 14, 2013

Level: University

Grade: A

Length: 2 / 372

Essay text:

The government, federal reserve system, commercial banks, and separate borrowers all share different roles in the creation on new money. A checking account for example is money that a bank owes you and currency is money that the Federal Reserve owes you. Ferguson and Bond state “The reality is that hard work and productivity no longer have any direct link at all to creating money. Because of the way money is now created, money can no longer reflect the productivity of any industry or country” (Ferguson & Bond, 2002). When someone looks at creating and destroying money as simply creating or destroying bank debt it becomes easier to understand...

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