ability of banks to lend more moneythe collective ability of finance companies, banks, and other lenders of money to make money available to borrowers. While a central bank can create money, it cannot create credit.
Only White Swans on the Road to Revulsion by James Montier James Montier, an expert in behavioral finance, argues that investors would have a greater chance of spotting the formation of bubbles if they could only brush up on their history and have a greater awareness of human psychology. Co-head of global strategy at Société Générale, Montier has been described as an “enfant terrible” by Frankfurter Allgemeine Zeitung, an “iconoclast” by the Financial Times, a “maverick” by the Sunday Times and “a...
This article focuses on the creation of value by a company or organization. We assume a competitive environment in the sense that the end user of a product or service has the right to buy or not to buy, to use or not to use a product or service. Although the discussion and examples focus on value By John C. Groth
by the current regulatory framework to create new money out of nothing—which is called “creditcreation.” The collective decisions of commercial bank staff thus determine how much money is created, who gets the newly created money and to what use it is put. By Richard A. Werner