Money creation

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Money creation is the process by which the money supply of a country, or of an economic or monetary region, [note 1] is increased. In most modern economies, most of the money supply is in the form of bank deposits. [1] Central banks monitor the amount of money in the economy by measuring the so-called monetary aggregates. [note 2]

Money supply total amount of monetary assets available in an economy at a specific time

The money supply is the total value of money available in an economy at a specific time. There are several ways to define "money", but standard measures usually include currency in circulation and demand deposits. Each country’s central bank may use its own definitions of what constitutes money for its purposes.

Contents

Money supply

The term "money supply" commonly denotes the total, safe, financial assets that households and businesses can use to make payments or to hold as short-term investment. [2] The money supply is measured using the so-called "monetary aggregates", defined in accordance to their respective level of liquidity: In the United States, for example, M0 for currency in circulation; M1 for M0 plus transaction deposits at depository institutions, such as drawing accounts at banks; M2 for M1 plus savings deposits, small-denomination time deposits, and retail money-market mutual fund shares. [2]

A financial asset is a non-physical asset whose value is derived from a contractual claim, such as bank deposits, bonds, and stocks. Financial assets are usually more liquid than other tangible assets, such as commodities or real estate, and may be traded on financial markets.

The money supply is understood to increase through activities by government authorities, [note 3] by the central bank of the nation, [3] and by commercial banks. [4] The money supply is mostly in the form of bank deposits. [1]

Money creation by government spending

State spending is part of the state's fiscal policy. Deficit spending involves the state spending into the economy more than it receives (in taxes and other payments) within a certain period of time, typically the budget year. [5]

Fiscal policy use of government revenue collection and spending to influence the economy

In economics and political science, fiscal policy is the use of government revenue collection and expenditure (spending) to influence a county's economy. The use of government revenues and expenditures to influence macroeconomic variables developed as a result of the Great Depression, when the previous laissez-faire approach to economic management became discredited. Fiscal policy is based on the theories of the British economist John Maynard Keynes, whose Keynesian economics indicated that government changes in the levels of taxation and government spending influences aggregate demand and the level of economic activity. Fiscal and monetary policy are the key strategies used by a county's government and central bank to advance its economic objectives. The combination of these policies enables these authorities to target the inflation and to increase employment. Additionally, it is designed to try to keep GDP growth at 2%–3% and the unemployment rate near the natural unemployment rate of 4%–5%. This implies that fiscal policy is used to stabilize the economy over the course of the business cycle.

Deficit spending Spending in excess of revenue

Deficit spending is the amount by which spending exceeds revenue over a particular period of time, also called simply deficit, or budget deficit; the opposite of budget surplus. The term may be applied to the budget of a government, private company, or individual. Government deficit spending is a central point of controversy in economics, as discussed below.

Deficit spending increases the money supply. [6] The extent and the timing of budget deficits is disputed among schools of economic analysis. The mainstream view is that net spending by the public sector is inflationary in so far as it is "financed" by the banking system, including the central bank, and not by the sale of state debt to the public. [7]

Inflation increase in the general price level of goods and services in an economy over a period of time

In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy. The measure of inflation is the inflation rate, the annualized percentage change in a general price index, usually the consumer price index, over time. The opposite of inflation is deflation, a sustained decrease in the general price level of goods and services.

The existence itself of budget deficits is generally considered inflationary by mainstream economics, [6] so policies are prescribed for the lowering of the deficit, [note 4] while heterodox economists such as Post-Keynesians treat deficit spending as "simply" a fiscal policy option. [8]

Heterodox economics schools of economic thought or methodologies that are outside "mainstream economics", contrasting with or going beyond neoclassical economics

Heterodoxy is a term that may be used in contrast with orthodoxy in schools of economic thought or methodologies, that may be beyond neoclassical economics. Heterodoxy is an umbrella term that can cover various schools of thought or theories. These might for example include institutional, evolutionary, Georgist, Austrian, feminist, social, post-Keynesian, ecological, Marxian, socialist and anarchist economics, among others.

There has been an almost complete lack of inflationary pressure in advanced economies such as the UK and US since the major deficit spending and expansion of central bank balance sheets following the policy of quantitative easing pursued after the 2008 Global Financial Crash. This has cast doubt on the mainstream economic opinion that deficit spending should always and everywhere be discouraged.

Money creation by the central bank

Central banks

The authority through which monetary policy is conducted is the central bank of the nation. The mandate of a central bank typically includes either one of the three following objectives or a combination of them, in varying order of preference, according to the country or the region: Price stability, i.e. inflation-targeting; the facilitation of maximum employment in the economy; the assurance of moderate, long term, interest rates. [9]

The central bank is the banker of the government [note 5] and provides to the government a range of services at the operational level, such as managing the Treasury's single account, and also acting as its fiscal agent (e.g. by running auctions), its settlement agent, and its bond registrar. [10] A central bank cannot become insolvent in its own currency. However, a central bank can become insolvent in liabilities on foreign currency. [11]

Central banks operate in practically every nation in the world, with few exceptions. [12] There are some groups of countries, for which, through agreement, a single entity acts as their central bank, such as the organization of states of Central Africa, [note 6] which all have a common central bank, the Bank of Central African States, or monetary unions, such as the Eurozone, whereby nations retain their respective central bank yet submit to the policies of the central entity, the ECB. Central banking institutions are generally independent of the government executive. [13]

The central bank's activities directly affect interest rates, through controlling the base rate, and indirectly affect stock prices, the economy's wealth, and the national currency's exchange rate. [9] Monetarists and some Austrians [note 7] argue that the central bank should control the money supply, through its monetary operations. [note 8] [14] Critics of the mainstream view maintain that central-bank operations can affect but not control the money supply. [note 9]

Open-market operations

Open-market operations (OMOs) concern the purchase and sale of securities in the open market by a central bank. OMOs essentially swap one type of financial assets for another; when the central bank buys bonds held by the banks or the private sector, bank reserves increase while bonds held by the banks or the public decrease. Temporary operations are typically used to address reserve needs that are deemed to be transitory in nature, while permanent operations accommodate the longer-term factors driving the expansion of the central bank's balance sheet; such a primary factor is typically the trend of the money-supply growth in the economy. Among the temporary, open-market operations are repurchase agreements (repos) or reverse repos, while permanent ones involve outright purchases or sales of securities. [15] Each open-market operation by the central bank affects its balance sheet. [15]

Monetary policy

Monetary policy is the process by which the monetary authority of a country, typically the central bank (or the currency board), manages the level of short-term interest rates [note 10] and influences the availability and the cost of credit in the economy, [9] as well as overall economic activity. [16]

Central banks conduct monetary policy usually through open market operations. The purchase of debt, and the resulting increase in bank reserves, is called "monetary easing." An extraordinary process of monetary easing is denoted as "quantitative easing", whose intent is to stimulate the economy by increasing liquidity and promoting bank lending.

Fractional reserve theory of money creation

When commercial banks lend out money, they are expanding the amount of bank deposits. [17] The modern banking system can expand the money supply of a country beyond the amount created or targeted by the central bank, creating most of the broad money in the system through fractional-reserve banking. [17]

Banks are limited in the total amount they can loan by their capital adequacy ratios, and their required reserve ratios. The required-reserves ratio obliges the bank to keep a minimum, predetermined, percentage of their deposits at an account at the central bank. [note 11] The theory holds that, in a system of fractional-reserve banking, where banks ordinarily keep only a fraction of their deposits in reserves, an initial bank loan creates more money than is initially lent out.

The maximum ratio of loans to deposits is the required-reserve ratio , which is determined by the central bank, as

where are reserves and are deposits.

In practice, if the central bank imposes a required reserve ratio () of 0.10, then each commercial bank is obliged to keep at least 10% of its total deposits as reserves, i.e. in the account it has at the central bank.

The process of money creation can be illustrated with the following example in the United States: Corporation A deposits $100,000 into Bank of America. Bank of America keeps $10,000 as reserves at the Federal Reserve. To make a profit, Bank of America loans the remaining $90,000 to the federal government. The government spends the $90,000 by buying something from corporation B. B deposits the $90,000 into its account with Wells Fargo. Wells Fargo keeps $9,000 as reserves at the Federal Reserve, and then lends the remaining $81,000 to the government. If this chain continues indefinitely then, in the end, an amount approximating $1,000,000 has gone into circulation and has therefore become part of the total money supply [18] . Furthermore, the Federal Reserve itself can and does lend money to banks as well as to the federal government. [19] There is currently neither an explanation on where the money comes from to pay the interest on all these loans, nor is there an explanation as to how the United States Department of the Treasury manages default on said loans (see Lehman Brothers). A negative supply of money is predicted to occur in the event that all loans are repaid at the same time.

The ratio of the total money added to the money supply (in this case, $1,000,000) to the total money added originally in the monetary base (in this case, $100,000) is the money multiplier. [note 12] In this context, the money multiplier relates changes in the monetary base, [note 13] which is the sum of bank reserves and issued currency, to changes in the money supply. [6]

If changes in the monetary base cause a change in the money supply, then

where is the new money supply, is the monetary base, and is the money multiplier. Therefore, the money multiplier is [6]

The central bank can control the money supply, according to this theory, by controlling the monetary base as long as the money multiplier is limited by the required reserve ratio.

Credit theory of money

The fractional reserve theory where the money supply is limited by the money multiplier has come under increased criticism since the financial crisis of 2007–2008. It has been observed that the bank reserves are not a limiting factor because the central banks supply more reserves than necessary [20] and because banks have been able to build up additional reserves when they were needed. [21] Many economists and bankers now realize that the amount of money in circulation is limited only by the demand for loans, not by reserve requirements. [22]

When a bank issues a loan of $1000 to a customer, they debit the customer's loan account with $1000 and at the same time they credit the customer's deposit account with $1000, ready for using. The bank now has a new asset of $1000 and a new liability of $1000. The bank's accounts are still in balance because the assets and liabilities are increased by the same amount. The bank's balance sheet is simply expanded with the amount of $1000. The bank does not take the $1000 out of its reserves. The $1000 are new circulating money that did not exist prior to the transaction. [23]

A study of banking software demonstrates that the bank does nothing else than adding an amount to the two accounts when they issue a loan. [21] The observation that there appears to be no limit to the amount of credit money that banks can bring into circulation in this way has given rise to the often-heard expression that "Banks are creating money out of thin air". [20]

The amount of money that is created in this way when a loan is issued is equal to the principal of the loan, but the money needed for paying the compound interest of the loan has not been created. As a consequence of this process, the amount of debt in the world exceeds the total money supply. Critics of the current banking system are calling for monetary reform for this reason.

The credit theory of money, initiated by Joseph Schumpeter, asserts the central role of banks as creators and allocators of the money supply, and distinguishes between "productive credit creation" (allowing non-inflationary economic growth even at full employment, in the presence of technological progress) and "unproductive credit creation" (resulting in inflation of either the consumer- or asset-price variety). [24]

The model of bank lending stimulated through central-bank operations (such as "monetary easing") has been rejected by Neo-Keynesian [note 14] and Post-Keynesian analysis [25] [18] as well as central banks. [26] [27] [note 15] The major argument offered by dissident analysis is that any bank balance-sheet expansion (e.g. through a new loan) that leaves the bank short of the required reserves may affect the return it can expect on the loan, because of the extra cost the bank will undertake to return within the ratios limits – but this does not and "will never impede the bank's capacity to give the loan in the first place." Banks first lend and then cover their reserve ratios: The decision whether or not to lend is generally independent of their reserves with the central bank or their deposits from customers; banks are not lending out deposits or reserves, anyway. Banks lend on the basis of lending criteria, such as the status of the customer's business, the loan's prospects, and/or the overall economic situation. [28]

Physical currency

The central bank, or other competent, state authorities (such as the Treasury), are typically empowered to create new, physical currency, i.e. paper notes and coins, in order to meet the needs of commercial banks for cash withdrawals, and to replace worn and/or destroyed currency. [29] The process does not increase the money supply, as such; the term "printing [new] money" is considered a misnomer. [1]

In modern economies, relatively little of the supply of broad money is in physical currency. [note 16]

Monetary financing

Policy

"Monetary financing", also "debt monetization", occurs when the country's central bank purchases government debt. [30] It is considered by mainstream analysis to cause inflation, and often hyperinflation. [31] IMF's former chief economist Olivier Blanchard states that

governments do not create money; the central bank does. But with the central bank's cooperation, the government can in effect finance itself by money creation. It can issue bonds and ask the central bank to buy them. The central bank then pays the government with money it creates, and the government in turn uses that money to finance the deficit. This process is called debt monetization. [32]

The description of the process differs in heterodox analysis. Modern chartalists state that

the central bank does not have the option to monetize any of the outstanding government debt or newly issued government debt...[A]s long as the central bank has a mandate to maintain a short-term interest rate target, the size of its purchases and sales of government debt are not discretionary. The central bank's lack of control over the quantity of reserves underscores the impossibility of debt monetization. The central bank is unable to monetize the government debt by purchasing government securities at will because to do so would cause the short-term target rate to fall to zero or to any support rate that it might have in place for excess reserves. [8]

Restrictions

Monetary financing used to be standard monetary policy in many countries, such as Canada or France, [33] while in others it was and still is prohibited. In the Eurozone, Article 123 of the Lisbon Treaty explicitly prohibits the European Central Bank from financing public institutions and state governments. [34] In Japan, the nation's central bank "routinely" purchases approximately 70% of state debt issued each month, [35] and owns, as of Oct 2018, approximately 440 trillion JP¥ (approx. $4trillion) [note 17] or over 40% of all outstanding government bonds. [36]

In the United States, the 1913 Federal Reserve Act allowed federal banks to purchase short-term securities directly from the Treasury, in order to facilitate its cash-management operations. The Banking Act of 1935 prohibited the central bank from directly purchasing Treasury securities, and permitted their purchase and sale only "in the open market". In 1942, during wartime, Congress amended the Banking Act's provisions to allow purchases of government debt by the federal banks, with the total amount they'd hold "not [to] exceed $5 billion." After the war, the exemption was renewed, with time limitations, until it was allowed to expire in June 1981. [37]

See also

Footnotes

  1. Such as the Eurozone or ECCAS
  2. For example, in the United States, money supply measured as M2 grew from $6.407 trillion in January 2005, to 18.136 trillion in January 2009. See Federal Reserve (2009)
  3. "A [state budget] deficit will lead to a direct rise in the money supply if the...Treasury finances the deficit not by borrowing but by drawing down balances it holds at commercial banks or [the central bank]." From Cacy (1975)
  4. And of state debt
  5. Formally, the Treasury's banker, or the banker of the respective competent authority, depending on the country, e.g. of the Ministry of Finance
  6. Established by Cameroon, Central African Republic, Chad, Republic of Congo, Equatorial Guinea and Gabon
  7. "The chief cause of inflation, Hayek wrote, is governmental control of the money supply." Spencer (1975)
  8. "Empirical studies of relations between the monetary base and the total money supply establish a strong basis for believing that central banks can control the money supply." Meigs (1971)
  9. "Another common misconception is that the central bank determines the quantity of loans and deposits in the economy by controlling the quantity of central bank money. ... Rather than controlling the quantity of reserves, central banks today typically implement monetary policy by setting the price of reserves — that is, interest rates." McLeay (2014)
  10. It has been argued that the central bank of a fiscally and monetarily sovereign nation can actually affect, if not dictate, the whole interest spectrum – above which, of course, as it is argued, adjustments are made for their actual conduct of business by commercial banks and the private sector, in accordance to their assessments, objectives, and preferences. E.g.: "Monetary policy – and there we are increasingly certain – cannot only influence the expectations component, but also the term premium. ... Central banks can lower long-term rates by removing duration risk from the market." Cœuré (2017). Also: "There is no evidence that the central bank has any meaningful control over the...spread between the short-term and the long-term rate of interest [but] it is quite clear that the central bank has full control over the long-term rate of interest. Pilkington (2014)
  11. Many countries in the world, including major economic powers, such as Canada or New Zealand, do not impose minimum reserves on banks. This does not allow banks to give out loans without limit, since there is always, aside from other considerations, the capital adequacy ratio.
  12. The origin of the notion of a money multiplier is discussed i.a. in Hegeland (1970)
  13. Also known as High-Powered Money, HPM
  14. "By increasing the volume of their government securities and loans and by lowering Member Bank legal reserve requirements, the Reserve Banks can encourage an increase in the supply of money and bank deposits. Without taking drastic action, they can encourage but they cannot compel. For in the middle of a deep depression just when we want Reserve policy to be most effective, the Member Banks are likely to be timid about buying new investments or making loans. If the Reserve authorities buy government bonds in the open market and thereby swell bank reserves, the banks will not put these funds to work but will simply hold reserves." Samuelson (1997)
  15. "In reality, neither are [bank] reserves a binding constraint on lending, nor does the central bank fix the amount of reserves that are available. ... Banks first decide how much to lend depending on the profitable lending opportunities available to them — which will, crucially, depend on the interest rate set by the [central bank]." McLeay et al. (2014)
  16. For example, in December 2010, in the United States, of the $8.853 trillion broad money supply (M2, table 1), only about 10% (or $915.7 billion, table 3) consisted of coins and paper money. See Statistic, FRS
  17. At a $1=¥0.0094 conversion rate

Related Research Articles

Central bank public institution that manages a states currency, money supply, and interest rates

A central bank, reserve bank, or monetary authority is an institution that manages the currency, money supply, and interest rates of a state or formal monetary union, and oversees their commercial banking system. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the monetary base in the state, and also generally controls the printing/coining of the national currency, which serves as the state's legal tender. A central bank also acts as a lender of last resort to the banking sector during times of financial crisis. Most central banks also have supervisory and regulatory powers to ensure the solvency of member institutions, to prevent bank runs, and to discourage reckless or fraudulent behavior by member banks.

Interest rate Percentage of a sum of money charged for its use

An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed. The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, the compounding frequency, and the length of time over which it is lent, deposited or borrowed.

Monetary policy of the United States

Monetary policy concerns the actions of a central bank or other regulatory authorities that determine the size and rate of growth of the money supply. For example, in the United States, the Federal Reserve is in charge of monetary policy, and implements it primarily by performing operations that influence short-term interest rates.

Money market type of financial market

Money market is an important part of the economy which provides short-term fund.The money market is the part of financial market which deals in the borrowing and lending of short-term loans generally for a period of less than or equal to 365 days.

Monetary reform

Monetary reform is any movement or theory that proposes a system of supplying money and financing the economy that is different from the current system.

Fractional-reserve banking banking system where bank holds reserves equal to fraction of deposit liabilities

Fractional-reserve banking is currently the most common practice by commercial banks worldwide. It involves banks accepting deposits from customers and making loans to others, while holding in reserves a fraction of the bank's deposit liabilities. The minimum amount that banks are required to hold in liquid assets is determined by the relevant central bank as a reserve requirement, also called the reserve ratio. Reserves are held as cash in the bank or as balances in the bank's account at the central bank.

Monetary base portion of the commercial banks reserves that are maintained in accounts with their central bank plus the total currency circulating in the public

In economics, the monetary base in a country is the total amount of bank notes and coins circulating in the economy. This includes:

A monetary system is the set of institutions by which a government provides money in a country's economy. Modern monetary systems usually consist of the national treasury, the mint, the central banks and commercial banks.

An open market operation (OMO) is an activity by a central bank to give liquidity in its currency to a bank or a group of banks. The central bank can either buy or sell government bonds in the open market or, in what is now mostly the preferred solution, enter into a repo or secured lending transaction with a commercial bank: the central bank gives the money as a deposit for a defined period and synchronously takes an eligible asset as collateral. A central bank uses OMO as the primary means of implementing monetary policy. The usual aim of open market operations is—aside from supplying commercial banks with liquidity and sometimes taking surplus liquidity from commercial banks—to manipulate the short-term interest rate and the supply of base money in an economy, and thus indirectly control the total money supply, in effect expanding money or contracting the money supply. This involves meeting the demand of base money at the target interest rate by buying and selling government securities, or other financial instruments. Monetary targets, such as inflation, interest rates, or exchange rates, are used to guide this implementation.

The reserve requirement is a central bank regulation employed by most, but not all, of the world's central banks, that sets the minimum amount of reserves that must be held by a commercial bank. The minimum reserve is generally determined by the central bank to be no less than a specified percentage of the amount of deposit liabilities the commercial bank owes to its customers. The commercial bank's reserves normally consist of cash owned by the bank and stored physically in the bank vault, plus the amount of the commercial bank's balance in that bank's account with the central bank.

Lender of last resort lender (provider of liquidity), that supplies liquidity to a financial institution or to the financial market in general when it is lacking

A lender of last resort (LOLR) is the institution in a financial system that acts as the provider of liquidity to a financial institution which finds itself unable to obtain sufficient liquidity in the interbank lending market and other facilities or sources have been exhausted. It is, in effect, a government guarantee of liquidity to financial institutions. Since the beginning of the 20th century, most central banks have been providers of lender of last resort facilities, and their functions usually also include ensuring liquidity in the financial market in general. The objective is to prevent economic disruption as a result of financial panics and bank runs spreading from one bank to the next from a lack of liquidity in one. Different definitions of the lender of last resort exist in literature. A comprehensive one is that it is "the discretionary provision of liquidity to a financial institution by the central bank in reaction to an adverse shock which causes an abnormal increase in demand for liquidity which cannot be met from an alternative source".

Bank of Korea central bank

The Bank of Korea is the central bank of the Republic of Korea and issuer of South Korean won. It was established on June 12, 1950 in Seoul, South Korea.

In monetary economics, a money multiplier is one of various closely related ratios of commercial bank money to central bank money under a fractional-reserve banking system. It measures the maximum amount of commercial bank money that can be created, given a certain amount of central bank money and ignoring leakages into currency held by the non-bank public. That is, in a fractional-reserve banking system, the total amount of loans that commercial banks are allowed to extend when there are no leakages is equal to a multiple of the amount of reserves. This multiple is the reciprocal of the reserve ratio, and it is an economic multiplier. The actual ratio of money to central bank money, also called the money multiplier, is lower because some funds are held by the non-bank public as currency and most banks hold excess reserves

Modern Monetary Theory or Modern Money Theory (MMT) is a heterodox macroeconomic theory that describes currency as a public monopoly for the government and unemployment as evidence that a currency monopolist is overly restricting the supply of the financial assets needed to pay taxes and satisfy savings desires. MMT is seen as an evolution of chartalism and is sometimes referred to as neo-chartalism.

Pushing on a string is a figure of speech for influence that is more effective in moving things in one direction than another – you can pull, but not push.

This article is about the history of monetary policy in the United States. Monetary policy is associated with interest rates and availability of credit.

The Sukhamoy Chakravarty Committee was formed in December 1982 under the chairmanship of Prof. Sukhamoy Chakroborty to assess the functioning of the Indian Monetary system. Its goal was to improve monetary regulation, a feat that was hoped would enable price stability. The committee, which submitted its report in April 1985, believed that price stability was essential for promoting growth and achieving other social objectives.

The National Emergency Employment Defense Act, aka the NEED Act, is a failed monetary reform proposal submitted by Congressman Dennis Kucinich in 2011, in the United States. The bill has failed to gain any co-supporters and was not introduced to the floor of the house.

The Swiss sovereign money initiative of June 2018, also known as Vollgeld, was a citizens' (popular) initiative in Switzerland intended to give the Swiss National Bank the sole authority to create money.

References

  1. 1 2 3 ECB (2017)
  2. 1 2 Money supply, FRS
  3. See "Money multiplier"
  4. ECB (2018)
  5. Cacy (1975)
  6. 1 2 3 4 Mankiw, 2014
  7. Hein (1981)
  8. 1 2 Mitchell (2008)
  9. 1 2 3 Monetary policy, FRS
  10. Pessoa (2012)
  11. Buiter (2008)
  12. List of central banks
  13. Cœuré (2017)
  14. Jahan (2014)
  15. 1 2 Open-market operations, FRS
  16. IMF (2017)
  17. 1 2 McLeay, Radia, and Thomas, 2014
  18. 1 2 Mitchell (2009)
  19. "Federal Reserve Board".
  20. 1 2 Standard & Poors, 2013
  21. 1 2 Werner, 2016
  22. Benes and Kumhof, 2012; Kumhof and Jakab, 2016; McLeay, Radia, and Thomas, 2014
  23. Kumhof and Jakab, 2016
  24. Schumpeter (1996)
  25. Kelton (1998)
  26. Tucker (2007)
  27. Disyatat (2010)
  28. Wray (2000)
  29. Mankiw (2012)
  30. Mishkin (2011)
  31. Elmendorf (1998)
  32. Blanchard (2012)
  33. Ryan-Collins (2015)
  34. Fiscal policies, ECB
  35. Evans-Pritchard (2013)
  36. Gov't Bonds, Bank of Japan
  37. Garbade (2014)

Sources