Surely, whilst a central bank remains on the gold standard (i.e. whilst the currency is fully convertible), it cannot create money? Debt can, exogenously, be created, with assets valued in pounds or troy ounces or Ningis. And such debt (subject to limitations in fungibility) can, up to a point, be used as though it were money.
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Date: 2012-06-08 08:53 pm (UTC)