TY - RPRT
T1 - Making Money from Making Money
T2 - Seigniorage in the Modern Economy
AU - Macfarlane, Laurie
AU - Ryan-Collins, Josh
AU - Bjerg, Ole
AU - Hougaard Nielsen, Rasmus
AU - McCann, Duncan
PY - 2017
Y1 - 2017
N2 - Who has control over the supply of new money and what benefits does it bring? There is now widespread acceptance that in modern economies, commercial banks, rather than the central bank or state, create the majority of the money supply. This report examines ‘seigniorage’ – the profits that are generated through the creation of money. We show that in the UK, commercial bank seigniorage profits amount to a hidden annual subsidy of £23 billion, representing 73% of banks’ profits after provisions and taxes.
AB - Who has control over the supply of new money and what benefits does it bring? There is now widespread acceptance that in modern economies, commercial banks, rather than the central bank or state, create the majority of the money supply. This report examines ‘seigniorage’ – the profits that are generated through the creation of money. We show that in the UK, commercial bank seigniorage profits amount to a hidden annual subsidy of £23 billion, representing 73% of banks’ profits after provisions and taxes.
M3 - Report
BT - Making Money from Making Money
PB - The New Economics Foundation
CY - London
ER -