Monetary Policy Archives - Crusoe Economics

How QE Creates Money in Canada: A Simple Example

The point of this article is to describe, with a few basic examples, how QE does (and does not) create money in Canada.

Many people today believe that the creation of money “out of thin air” by central banks is one of the primary causes of

To the casual observer it may seem absurd to suggest that the recent run-up in both inflation and asset prices is primarily a

With the Bank of England recently serving notice to its commercial banking sector that negative interest rates could soon be on its way,

ABSTRACT This paper provides a general understanding of the process by which the Bank of Canada (BoC) creates money through large scale asset