No it doesn’t. The government has nothing to do with the money supply (as long as the CB is independent). Central banks create currency, commercial banks borrow from the central bank and create by far the largest part of money supply by giving loans.
No it doesn’t. The government has nothing to do with the money supply (as long as the CB is independent). Central banks create currency, commercial banks borrow from the central bank and create by far the largest part of money supply by giving loans.