en-GB
The survey of the separation of money and credit
O. Sova Ph.D. in Economics, Associate Professor of National Economy and Finance Department, «KROK» University
In the current monetary system, the creation of money is closely linked to the granting of credit. The stock of money increases when commercial banks grant credit, stimulating aggregate demand and inflation, and it decreases when credit is paid back, exerting a downward pressure on prices.