Questions tagged [money-supply]
28 questions
40
votes
10 answers
Why do governments borrow money instead of printing it?
This question is raised in the movie Money as Debt (at time index 29:00).
The answer that immediately pops to my head is "because printing money causes inflation".
However, according to this movie, money is created not only by printing it but rather…
ripper234
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18
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4 answers
Do Banks Cause Inflation? What are other possible causes?
Some people believe that inflation is caused by an increase in the money supply when the banks print more notes engage in fractional reserve lending. Is this correct?
As I understand it, when there is more available money in the market, the price of…
lamwaiman1988
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18
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3 answers
Is there any way to know how much new money the US is printing?
There is a lot of talk about the Fed printing money.
Is there any way to know how much new money is being printed and when?
tucson
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Who creates money? Central banks or commercial banks?
Which of these is a better description of money creation:
Scenario 1: Central bank creates money
Customer A deposits $10 at his bank. Customer B wants to borrow $100. The bank is in good standing with the Central bank and is allowed to borrow 10x…
user1451002
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8
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4 answers
What is the technological problem that cryptocurrency solves? How does overcoming that technological problem help in the real world?
I have read a lot about cryptocurrency and am yet to find a good explanation of why the technology does or even might someday provide an improvement over the current monetary system.
So, what is the technological problem that cryptocurrency solves?…
kennyB
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5
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2 answers
Why is seigniorage different for paper notes and coins?
Wikipedia defines Seigniorage for paper notes and metal coins. Why is seigniorage for paper money not just face value - production cost? I can understand using just the interest rate in the age of the gold standard, but why today? Is it because the…
highBandWidth
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What is the most effective saving money method?
Sometimes people realize that their salary suddenly disappears before the end of the month. What are some tips on how can I save my money, or how can I increase my income besides my full-time job?
blackcornail
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4
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Do central banks really dispose of old currency the way it's shown in movies?
I have watched many movies where people who want to rob a load of money, Just wait until the federal reserve pulls money back to them and right in between them removing the serial numbers from their records, and burning the bills, they go in and…
Joseph Casey
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5 answers
How does money vanish in the financial system?
From time to time I hear X dollars in value was erased in the stock market etc. But can money really vanish when, for instance stocks lose value?
For example, Joe buys a stock from Ben for 100 dollars, then the price crashes to 20 dollars. Well Ben…
user123124
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3 answers
What is digital money/currency?
This came from question about negative interest rates and holding
"cash" in a "vault".
As physical legal tender is at most 10% of money supply, why does a corporation (FORD) /investment company (FIDELITY), or state pension (CALIPERS) would need to…
paulj
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2
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1 answer
How does trade generate profits for all parties?
Stupid question, i know, but I'm not financially literate enough and couldn't find proper keywords for Google search on my question.
The question arises from the logic that all traders whether in domestic or international trade form a closed…
Allahjane
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1
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1 answer
How do I hedge properly against inflation and other currency risks?
What is the best way to split individual investments between commodities and individual currencies? Is there an advantage to investing in commodity money and if so, what percentage of your personal finances should you spend amassing in commodities?
user20687
1
vote
3 answers
Who is buying all the debt?
Please bear with my limited knowledge of monetary systems. I've got degrees in Comp Sci and Math, and i work as an ml engineer, so I'm pretty used to numbers. But, i simply can't wrap my mind around the logic of our financial system. Is there…
Alan
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vote
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How would stocks devalue if majority holders were to sell all their stock?
If an uber-rich person, say the CEO of certain online retail company or the ex CEO of certain Redmond based technology company suddenly were to sell ALL of their shares, would it be possible to estimate how much the stock price would change based on…
jregalad
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1
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M2 money supply
The definition of M2 money supply:
M2 is a measure of the money supply that includes cash, checking
deposits, and easily convertible near money. M2 is a broader measure
of the money supply that M1, which just include cash and checking
…
Slartibartfast
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