
Alfonso Peccatiello (Alf) on Money Printing, US Risks and ECB Surprises
Macro Hive Conversations With Bilal Hafeez
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How Do Central Banks Print Money?
Most common misconception in finance is that a central banks print money. But these bank reserves do never access the real economy, they have no way to get out in the real economy. So i just describe two e from a e c b perspective. How it works is when billal or myself enter into a bank, the bank looks at us, billad or alfor wheever the creditor wants to be and assesses our credit worthiness. Are we able to sustain the newly created credit effectively? An it will want to extend an A and B loan compared to the capitalistic view of what would happen if this was allowed to go ahead. Does it make sense from a risk on equity perspective
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