British economist J. Ryan-colorins、R. Wemer (R. Wemer)、Jackson (A. Jackson) and T. Greenham (where the currency comes from: the guidance of the British currency and banking system "published in 2012，Focus on analyzing the British currency and banking system，and put forward some novel views。The title page published by the book in 2022 wrote: Based on the informative analysis，This book proposes the point of view of subverting traditional cognition，That is, most of the currency supply in the modern economy is created and allocated by commercial banks through credit.。

The basic type of currency is currency、The reserves of commercial banks stored in the central bank、Commercial bank current deposits。The first two currencies are called basic currencies，The latter currency is called demand deposit，Most of the currency is a well -known for demand deposit。Ryan-Collins and others in the book "Undvertes Traditional Cognition" views are manifested in the following aspects。First，People's understanding of banks is to absorb deposits first and then issue loans，But this kind of cognition is wrong。They pointed out: "The reality is，When the loan is issued，The bank does not need any other person’s money。The bank does not wait for the deposit to issue a loan。Bank deposits are purely created by the banking system。"2，People's traditional cognition of central banks can control currency supply，Unfortunately, Bet365 lotto review the central bank model in this textbook is out of date，Not accurate。They wrote: "When the bank is confident，They will create new currencies by issuing loans and increasing borrower deposits ... The size of the credit scale of commercial banks and the currency supply of the entire country，It mainly depends on the bank's confidence and power。"" Third，People's traditional cognition of central banks can determine the credit of commercial banks，But this kind of cognition is wrong。They pointed out: "It's not the Bank of England that the bank can issue how much credit can issue，Instead, the bank determines how many central banking reserve and cash must be lent by the Bank of England。"But the author thinks，"Where to come from" in the book "Undverted Traditional Cognition" comes in the book，Failure to subvert the "traditional" cognition。

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Ruian-Collins and others described in the first point of view is existing，But only under specific conditions will occur，Commercial banks cannot leave the deposit unconditionally and issue a loan。From a formal perspective，Commercial banks can issue loans on the account with the way to record borrowers' deposits，Loans can create deposits，But this is not unconditional。Suppose a commercial bank does not accept deposits，No reserve in the central bank，No deposit in other commercial banks，I didn't hold other financial assets，Now the commercial bank issues a loan in a way to write a deposit in the borrower account，Loans seem to create deposits。but，When the borrower rely on deposit expenditure，or when the deposit is withdrawn，How does the commercial bank pay?

bet365 live casino games If the commercial bank conducts multilateral settlement through the central bank，It has a reserve in the central bank; if the commercial bank is settled with other commercial banks, bilateral settlement，It must leave deposits in other commercial banks; if the commercial bank is paid by selling other financial assets，It must first hold other financial assets。This means that the commercial bank must meet the above conditions，Can you create deposits with loans。and commercial banks accept deposits，It is the reserve formed in the central bank、Deposit in other commercial banks、The source of other financial assets。

Considering that the Bank of England has abandoned the legal reserve regulations，If the Bank of England uses the discount window and the open market operation to increase the basic currency，That is, commercial banks use their own financial asset exchange reserves to have too much reserve，Of course, it can also be a commercial bank's deposit reserve reserve and excessive reserve，Commercial banks can create deposits with excessive reserve loans，The action of currency occurs like this。Even so，The source of excess reserve is also a deposit received by commercial banks。This can be seen，Ruian-Collins and others to create excessive reserve or under certain conditions to create a deposit process that has been created by loans。

　Central Bank determines the direction of the change of currency supply

The scale of the business bank loan creation of deposits is restricted by the currency authorities。Although the Bank of England canceled the compulsory legal reserve system in bet365 Play online games 1981，Many central banks in Western countries have also weakened the management of the reserve，But the central bank still takes various measures to supervise the size of the loan of commercial banks，Commercial banks must also keep sufficient reserve for avoiding operating risks。Take Britain as an example，As Ruian Collins and others said in the book "Where to Currency"，Bank of England has always had a liquidity mechanism，and implement a new liquidity mechanism after 2009: each commercial bank must hold a certain amount of reserve or British government bonds as liquidity guarantee。Another，The Bank of England regulates the British commercial bank in accordance with the Basel Agreement，Core capital adequacy ratio, that is, the ratio of core capital on risk -weighted assets is 8.5%-11%。Obviously，Commercial banks are not confident to create currency supply at will。The central bank cannot determine what the final currency supply is，But you can determine the direction of the change of currency supply。

Ruian-Collins and others refer to cash and reserves as central bank currency，They pointed out: "Among the total loans of £ 10,000，The bank only needs to obtain an additional 937 pound of central bank currency -less than 7%of the total loan amount。"" But know，Assume that other conditions remain unchanged，No £ 937 central bank currency increase，There will be no £ 10,000 loans to generate。Actually，The process of changes in currency supply is the central bank、Commercial Bank、Depositors、Process of the interaction of borrowers，Exaggerated or denying the role of the central bank is one -sided。

bet365 Play online games In reality，Bank of England still adjusts the currency supply of British by adjusting the basic currency。Bank of England's monetary policy goal is to keep the price level stable，Usually adjusting bank rates and basic currencies to achieve monetary policy goals。The so -called bank rate here，refers to the interest rate of Bank of England's reserve payment for commercial banks。When the British economy declines，Bank of England reduces bank rates and increases basic currencies by purchasing bonds; when inflation occurs in the UK，Bank of England increases bank rates and reduce basic currency in the method of selling bonds。According to statistics from Bank of England，The currency expansion cycle from November 2020 to September 2022，British Basic Currency (M0) increased by 4.454 billion pounds，Jining and Dating deposits (M1) increased by 428.419 billion pounds; the currency contraction cycle from September 2022 to February 2023，M0 decreased by 1.087 billion pounds，M1 reduced 167.479 billion pounds。The changes in the deposit of the current period may not be exactly the change of the basic currency，But the impact of basic currencies on current deposits is obvious。

　Liquidity support is not unilateral and unconditional

The role of the "last lender" of the currency authorities is not unilateral and unconditional。​​Ruian-Collins and others mentioned "Banks determine how many central bank reserve and cash must be lent by the Bank of England"，is the liquidity support provided by the Bank of England through the "convenient window convenience"，It has become a unilateral and unconditional demand for commercial banks。

Bet365 lotto review Actually，When the Bank of England provides liquidity support for commercial banks through the "discount window convenience"，Quality of the discount bills、Qualification of commercial banks that come to discount、The use of discounted funds has clear regulations。Bank of England can also adjust the amount of discounts by adjusting the discount rate。P. Fisher, Executive Director of the Bank of England's Marketing Department, published a speech entitled "England Bank to provide liquidity support: convenient discount window" in 2012，Explanation of the function of the "Last Load" of Bank of England。He pointed out，Bank of England will only provide loans from commercial banks that considers it to pay for paid and planned feasible.。The term of the borrowing of "Discount Window Convenience" is usually 30 days，Only intend to provide short -term liquidity support to the bank。The pricing principle of "convenient discount window convenience" is to encourage banks to self -prevent business risks and reduce moral risks。

This can be seen，"Settlement window convenience" is two -way: when the currency authorities want to release liquidity，Commercial banks may not come to discount; when commercial banks require discounting，Monetary authorities may not issue loans。Another，"Settlement window convenience" is conditional: Conditional commercial banks submit qualified discount bills to obtain liquidity support。

(The author is a professor at the School of Economics and Business Administration of Beijing Normal University)