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What a superb medium for comunication and deeper learning!
Thank you
Great explainer as usual. Forgive me but where exactly is the credit for the £900bn in the BoE’s books? Not the consolidated fund as that is cleared, ways & means? National Loans Fund?
It increases the central bank reserve accounts. Look them up in the glossary linked from this blog (top of the page menu) and here https://www.taxresearch.org.uk/Blog/glossary/
OK I’ve revisited your double-entry entry explainer posted 21/6/22 and it appears the BoE has credit accounts due to each bank labelled CBRA – Lloyd’s etc
Yes
As I have said – these are the reserves infated by QE
You should create high resolution versions of these graphics. This one is just 550×825 and the text starts to blur when we increase size on a computer screen.
They are as clear as a bell on mine….sorry
Great! A useful reference for me and a great resource for anyone new to the concept.
Many thanks!
Thank you
[…] For information, my infographic on quantitative easing (QE) is available here. […]
Why are we paying interest on os QR? What is it £20-30Bn pa? We didn’t have to, not every country did,.
I have no idea what your question means. Sorry.
Another excellent explanation of a completely obscure pair of words.
I recently mentioned Dr Matthew Crocker from Deakin University. When explaining the creation of new money by both commercial and central banks he describes the central bank money, unencumbered by the need to pay it back with interest, as ‘currency’ and commercial bank loans simply as ‘money’. He then says that it is predominantly money that circulates in the real economy but currency which is required for banks to settle transactions between themselves and the central bank. I find this distinction in names very helpful as well as concise.
Neat