Martin Wolf: Money out of Nothing

A couple of weeks ago, I took issue with Martin Wolf’s claim in the Financial Times that fractional reserve banking is a product of market forces. But Martin’s now firmly back in my good books, following this beauty of a quote:

“The essence of the contemporary monetary system is creation of money, out of nothing, by private banks’ often foolish lending.” FT, 9th Nov 2010

You can read the full article at the FT.