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Neil P.'s avatar

Gawd, I can't remember back far enough to the last time someone tried to excuse money creation by claiming that no money was "printed". Accompanying it with a graph of "notes in circulation" is over the top.

"Money printing" actually refers to the creation of money -- not actually printing bills on a printing press.

"Issuing credit" becomes "money printing" when the credit is spent. And the governments' borrowed and spent during the pandemic. This is the cause of inflation. So, yes, money was printed.

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Capital Traffic Czar's avatar

Currency notes make up a very small percentage of what we call money in the economy. The Bank of Canada created money not by printing bills but by purchasing debt from the government at an unprecedented rate. This money doesn't come from anywhere, the Bank of Canada does not have some giant account of Canadian dollars to just doll out to the government whenever they need to stay afloat. So, the Bank of Canada creates money in a computer account and uses that newly made money to purchase the bonds and the government takes the newly created money from those bonds and spends it, but nowhere in this process is there ever actual money created. Which makes your whole post disingenuous because no central bank "prints money" but actually printing money. We do it with either central bank bond purchases or, in Canada, through the Charter banks creation of money when loans are made like for a mortgage.

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