How central banks create money by buying assets

A central bank can create money by buying assets

When a central bank buys government bonds, it can pay with newly created money. The seller gives up the bonds, while the banking system gains new reserves and the total amount of basic central-bank money grows. Selling bonds can reverse the process.

Slavery persisted despite legal bans

~40 million people

In 2019, an estimated 40 million people worldwide were enslaved, even though slavery was illegal in every country. Children made up 26% of that total.

France created a government with no easy way out of a deadlock

After the French Revolution, France created a government called the Directory. Its leaders could not simply call new elections, while lawmakers could block their plans. When the two sides became stuck, the system had few peaceful ways to solve the conflict, so the government repeatedly turned to decrees and the army.

Like this? There’s a whole feed of it. Replace empty scrolling with things worth knowing.

Download Hence for free

How central banks create money by buying assets

A central bank can create money by buying assets

Keep exploring