Money creation

Tom Lehman uswa12 at
Mon Apr 10 06:43:57 PDT 2000

Doug--What's that nebulous term that is being thrown around, "securitzed"; I'm pretty sure it refers to real estate transactions.


Doug Henwood wrote:

> Enrique Diaz-Alvarez wrote:
> >In any case, it seems to me that the difference between creating money and
> >creating money in $250 increments only is a fairly minor detail, don't you
> >think?
> How do MM funds create money? You deposit $1,000, the fund buys
> commercial paper and CDs and T-bills. The issuers of those
> instruments either invest it in real activity or re-lend it to
> someone who might. Where's the ex nihilo part?
> Doug

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