Re: [Taler] note to 035-regional-currencies.rst

[Oliver Endrikat]

> Why are private banks allowed to print money?  Why are they allowed to take
> tribute for printed money?  Why are they allowed to decide who gets money and
> for what?



Because the banks are close to the customer and know his business.
New money is normally given as credit to some customer who expects that the 
lent money will earn the interest, at least.
And the bank takes the risk that the credit is not payed back, or tries to 
avoid the by defining securities to be given. In case, they also have the 
burden to liquify the securities.

By this approach, you have the overall volume of money increasing with the 
overall economic output.

The actual paper money or coins is not printed by the banks, they only create 
’new money’ by granting credits to customers.
The actual paper money and the coins are created by the central bank.

Oliver