Money creation, or money issuance, is the process by which the money supply of a country, or of an economic or monetary region, is increased. In most modern economies, most of the money supply is in the form of bank deposits. Central banks monitor the amount of money in the economy by measuring the so-called monetary aggregates.In most nations that issue their own currency, there are unlimited intraday overdrafts that fund spending, for example in the UK Supplementary Memorandum by HM Treasury 2001. Hence, all government spending is money creation, and creates an amount of tax and saving, the opposite way round to how most think.
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