Where Do New Dollars Come From?
By: Alex Gloy
Money's pivotal role in trade and prosperity is undisputed, but its origin and total remain elusive to many.
Dollars in circulation should be known, individuals, businesses, banks, and governments track their finances.
Google "How many dollars exist in the world?" for puzzling and varied figures, indicating uncertainty.
Complexities arise from diverse money definitions, making it hard to precisely determine the total in circulation.
Car dealers prioritize completing sales, regardless of the diverse forms of money used by customers.
Money scenarios: Central bank creates public money. Private banking sector creates private money.
Shadow banking's money creation: in-house financing bundling loans into collateralized car loan obligations.
Varied money creation: central banks, commercial banks, and shadow banking play key roles in economy.
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