Hacker News new | past | comments | ask | show | jobs | submit login

That's incorrect. A bank can't give out more dollars than they receive from depositors. It can give out all kinds of paper that is _valued_ in dollars, but not the digital representation of banknotes with the pictures of dead presidents on the front.

In contrast, the Fed can create actual dollars. It can just buy an asset and pay for it with money that it has just created.




Consider applying for YC's Spring batch! Applications are open till Feb 11.

Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: