I understand how CB creates money and buys bonds and other assets.
But I couldn’t find anything on what CB does with interest and profit.
In: Economics
Nothing basically. They create the money they loan out of nothing, so the interest only exists as a mean to limit the amount of loans taken (if everyone could get free loans they’d just take a new free loan to pay off the old one, wich would make it a gift and not a loan)
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