A Quote by Michael Kumhof

The key function of banks is money creation, not intermediation.

Michael Kumhof

Quote Topics

Banks Creation Function Key Money

Quote Author

Michael Kumhof
Born: October 15, 1962

Republican leaders have made clear they have no plans to use the power of government to stimulate the economy, invest in job creation and spur job growth. The Fed's plan is to give banks more money to finance the private sector job creation. But banks have ample cash now; they aren't lending, and the private sector is not creating the jobs. That is why we have 15 million people unemployed.

Dennis Kucinich

Economically, ISIS is making money every day on the black market with their oil fields. But they are also putting money in banks. We know where those banks are. We should go after the banks and the facilitators using them.

Jack Keane

Narrow banks could restart effective intermediation and ensure that consumers and employment-creating small and medium-size enterprises are adequately financed and can contribute to the reactivation of the economy.

Edmund Phelps

At the base of the Fed pyramid, and therefore of the bank system's creation of "money" in the sense of deposits, is the Fed's power to print legal tender money. But the Fed tries its best not to print cash but rather to "print" or create demand deposits, checking deposits, out of thin air, since its demand deposits constitute the reserves on top of which the commercial banks can pyramid a multiple creation of bank deposits, or "checkbook money."

Murray Rothbard

The essence of the contemporary monetary system is creation of money, out of nothing, by private banks’ often foolish lending.

Martin Wolf

But the good news, the crime rate is down. Isn't that amazing? Less banks are being robbed. Well, sure. A, there's less banks. B, the banks don't have any money left. And C, nobody's got gas money for the getaway car. So, right there, crime is down!

Jay Leno

The Huashan project is a clear example of how an urban element, key to the successful growth of the city, can at the same time improve the quality of life for its citizens, thanks to an integration of all three bridges and the creation of boulevards on the banks of the canal.

Santiago Calatrava

No business in the economy has the easy money that banks get to play with.... The existence of banks with single digit amounts of equity is a completely unhealthy existence -- that is not only a risk for the banks, but for all of us.

Anat R. Admati

There is another method of obtaining money... It does not presuppose the existence of accumulated results of previous development, and hence may be considered as the only one which is available in strict logic. This method of obtaining money is the creation of purchasing power by banks. The form it takes is immaterial.

Joseph A. Schumpeter

The big issue is how much money can the government infuse for the capitalisation of the banks when we have quite a few private banks doing well. Does the government of India really require this number of public sector banks?

Anurag Thakur

Money is a function of value creation. The more value you create for other people, the higher the sales of your organization.

Robin Sharma

Creation is the artist's true function; where there is no creation there is no art.

Henri Matisse

I like banks because they keep my money safe, but I don't want to talk about banks 12 times a year.

Carol Bartz

So: if the chronic inflation undergone by Americans, and in almost every other country, is caused by the continuing creation of new money, and if in each country its governmental "Central Bank" (in the United States, the Federal Reserve) is the sole monopoly source and creator of all money, who then is responsible for the blight of inflation? Who except the very institution that is solely empowered to create money, that is, the Fed (and the Bank of England, and the Bank of Italy, and other central banks) itself?

Murray Rothbard

Commercial banks - that is, fractional reserve banks - create money out of thin air. Essentially, they do it in the same way as counterfeiters.

Murray Rothbard

It's wrong to rob banks, yeah, but is it right for banks to loan people money, knowing full well they can't pay it back?