How the actual magic money tree works
by Zoe Williams from on (#36D9P)
85% of MPs were unaware that new money is created every time a bank extends a loan. Were you?
Shock data shows that most MPs do not know how money is created. Responding to a survey commissioned by Positive Money just before the June election, 85% were unaware that new money was created every time a commercial bank extended a loan, while 70% thought that only the government had the power to create new money.
The results are only a shock if you didn't see the last poll of MPs on exactly this topic, in 2014, revealing broadly the same level of ignorance. Indeed, the real shock is that MPs still, without embarrassment, answer surveys.
Related: Quantitative easing is a costly habit we should have kicked long ago | Larry Elliott
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