by Christian Siedenbiedel, Wolfgang Storz and Albrecht Mueller
28 Feb 2012
To give a credit to a customer, a bank doesn't need to take the savings of another customer from its vaults. It creates the money out of nothing. In a countermove, the bank must deposit money with the central bank for the credit-the so-called minimum reserve. There is a debate in the discipline, not only in Occupy, whether the creation of money can be left to the banks after the experiences of the banking crisis.