How monetary policy works: Quantitative easing explained

Monty Pelerin (h.t. Barry Riholz) offers this morning the following video at his blog to explain Quantitative Easing:

Yet I have called into question the usefulness of the metaphor of printing, since central banks create most of the money in our world today through electronic transfers, i.e., they do not print at all, but it becomes oh so much money on debit cards and bank balances.   I.e., no wheel barrows are needed, because banks can create a trillion dollars of money, and it takes up no space.  It much more like the Corner Gas reality as I pointed out in my post “A Canadian explanation of global monetary policy“.

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