Mervyn King: How Do Banks Create Money
on Thursday, October 22, 2015Mervyn King Money Quote confirming something that John Kenneth Galfbraith called so simple the mind is repelled, with something so important a deeper mystery seems only decent. Mervyn King Governor of the Bank of England said:(PDF page 3, paragraph 3)
When banks extend loans to their customers, they create money by crediting their customers’ accounts
— Mervyn King