Webster’s New World College Dictionary states:Inflation – (a) an increase in the amount of money and credit in relation to the supply of goods and services. (b) an increase in the general price level, resulting from this, specif., an excessive or persistent increase, causing a decline in purchasing power. Let’s assume for the moment that…
Kai Ryssdal, host and senior editor of Marketplace, public radio’s program on business and the economy, leaves some to wonder just how deeply he understands the money that he writes and talks about. He doesn’t seem to understand the word MONETIZE. On a recent show, Kai referred to the Chinese getting money for something thereby…
In search for the answer to that question, letters were written to the U.S. Treasury and others. The answer received from Russell L. Munk, assistant general counsel for the U.S. Treasury was: “The actual creation of money always involves the extension of credit by private commercial banks.” This means interest-bearing loans. Mr. Munk went on…
We hear it all the time: He paid with a 5 dollar “bill” I only have a 10 dollar “bill” She handed him a dollar “bill” You’ve probably heard other ways people use “bills” when referring to paper currency. One shouldn’t use the term, “bills” in one’s daily life when speaking of Federal Reserve Notes,…