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- Title
Money creation in the modern economy.
- Authors
McLeay, Michael; Radia, Amar; Thomas, Ryland
- Abstract
The article discusses the process of money creation by commercial banks and also explains how the majority of money in the modern economy is created by commercial banks making loans. It states that mainly money takes the form of bank deposits in modern economy. It further mentions that primary objectives of Bank of England is to ensure monetary stability by keeping consumer price inflation on track to meet the 2 percent target set by the Great Britain government.
- Subjects
UNITED Kingdom; MONEY; BANKING industry; LOANS; BANK of England; PRICE inflation
- Publication
Bank of England Quarterly Bulletin, 2014, Vol 54, Issue 1, p14
- ISSN
0005-5166
- Publication type
Article