We get liquidity (spending) in the economy when banks lend money. The modern economy generates money through lending. In other words money is only created when someone borrows. Banks only lend money if they are likely to get it back and they are the main source of loans. The Reserve Bank dropping the interest rate [...]
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Recent Posts
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- Patent Protection of Genes Unnecessary
- Creative Finance to build the Cotter Dam
- Reforming Election Funding
- Financing a Nation’s Health Bills
- The Democratisation of Government Spending
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