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Board Administrator
Username: Admin

Post Number: 1531
Registered: 12-2004
Posted on Wednesday, February 20, 2008 - 1:14 pm:   Edit PostPrint Post

Arial asked in the past about governments creating/focusing on inflation. Here is a comprehensive explanation on why central banks would try to reach an inflation target and why.
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Intermediate Member
Username: Arial

Post Number: 155
Registered: 10-2006

Posted on Wednesday, February 20, 2008 - 3:11 pm:   Edit PostPrint Post

Many thanks, Roberto for the great web sites you give us. I intend to search the site one day and try to list them all. Especially the Argentina gov web sites you come up with.

I understand what causes inflation, how our money is created since we went off the gold and silver standard, and that the "money" they have loaned people never existed until it was "created" by the central bankers when it was entered on a ledger sheet. It is not money that something was produced for or that anyone ever deposited. This is what prompted my question. Putting that all together, I wonder if the banks really lose anything since the money never existed to start with.

I might not have been clear. If the answer is in the web site you sent, I will read it asap. Thanks again. Arial

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