New money enters the economic system through central bank credit creation and commercial bank lending

the verdict

SUPPORTED

the evidence backs this

Recorded sources

5 sources for · 0 against

Counts group repeated records of the same source within each side. They do not measure evidence strength or source independence.

Is it true that New money enters the economic system through central bank credit creation and commercial bank lending?

Yes. The retrieved papers consistently support the principle that new money and credit are endogenously created through central bank policy and commercial bank lending.

Verdict: SUPPORTED · 5 sources for, 0 against · Last checked 4 Aug 2026

The analysis

The retrieved literature thoroughly backs the assertion that money enters the economic system endogenously through central bank liquidity and commercial bank lending/credit creation. Multiple empirical and theoretical papers (0, 3, 7, 9, 11) directly corroborate this mechanism of money supply. None of the papers refute the claim. Therefore, the verdict is SUPPORTED.

Evidence for · 5

Endogenous money supply, global liquidity and financial transactions: Panel evidence from OECD countries

2023

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Śliwiński, P. (2023). Endogenous money supply, global liquidity and financial transactions: Panel evidence from OECD countries. doi.org. https://doi.org/10.24136/eq.2023.004

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More for · 4

The impact of the liquidity coverage ratio on money creation: A stock-flow based dynamic approach

2017

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Li, B., Xiong, W., Chen, L., & Wang, Y. (2017). The impact of the liquidity coverage ratio on money creation: A stock-flow based dynamic approach. doi.org. https://doi.org/10.1016/J.ECONMOD.2016.12.016

The Post-Keynesian endogenous-money supply: evidence from Poland

2019

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Bachurewicz, G. (2019). The Post-Keynesian endogenous-money supply: evidence from Poland. doi.org. https://doi.org/10.4337/ROKE.2019.03.09

Monetary Reform and Central Bank Digital Currencies: The Impact on Retail Banking

2024

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Abdullah, A. (2024). Monetary Reform and Central Bank Digital Currencies: The Impact on Retail Banking. doi.org. https://doi.org/10.26414/a3919

The macroeconomic effects of endogenous credit and money creation under Basel III regulations

2023

Get citation

Li, B. (2023). The macroeconomic effects of endogenous credit and money creation under Basel III regulations. doi.org. https://doi.org/10.1111/meca.12430

Related receipts

Is it true that commercial banks create money through the process of lending? SUPPORTED related question, same topic
Is it true that restricting money creation exclusively to the central bank stabilizes the economy? CONTESTED PARTIAL related question, same topic
Is it true that the central bank controls the money supply? CONTESTED PARTIAL related question, same topic
Is it true that fractional reserve banking allows banks to create money through lending? SUPPORTED related question, same topic

What does the evidence say?

Receipt History

first checked04 Aug 2026

judged → SUPPORTED · 8604 Aug 2026

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