What is the effect of derivatives upon the supply of money?

Can large investment banks effectively increase their capital by simply inventing ever more complex bets upon the goods and services created by others? Do CBO and other derivatives operate exactly like bank loans in creating new money?


Showing 1 reaction

How would you tag this suggestion?
Please check your e-mail for a link to activate your account.
  • John Verant
    published this page in Ask Prof. Wolff 2017-01-27 11:14:55 -0500

connect