IMF banks create money

In late December, the International Monetary Fund (IMF) published a working paper entitled Money Creation in Fiat and Digital Currency Systems confirming what the Bank of England admitted in 2014 and PBI Chair Ellen Brown has been arguing for over a decade: banks create new money when they make loans. The IMF working paper links the discussion to the emergence and design of central bank digital currencies (CBDC), with a special focus on how loans would be granted in a CBDC world.

[Read the paper]