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To establish the credibility, the central bank would have to show a readiness to create credit at a rapid rate.
Can data about electronic money transfers be used to help create credit scores for people who rely on them?
Wealth begets wealth, as the banks create credit almost at will, usually to satisfy the demands of the already wealthy.
Furthermore, unintentionally excessive capital requirements might create credit shortfalls, cut into global economic output, and reduce jobs.
That banks create credit is nothing new; the system depends on the truth that not all depositors will want their money back simultaneously.
(They also have the ability to create credit and influence patters of wealth distribution as they see fit but that's a subject for another day).
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Still, the system would create credits that efficient plants could sell to less efficient plants.
The projects create credits that can be sold in the California market.
But as the vote nears, Southampton is proposing a new use for a portion of its revenues to create credits for development elsewhere.
The banking system, however, is badly impaired and the normal channels for creating credit are blocked.
A default by any particular counterparty would not have created credit exposure for us if adequate collateral had been posted, which was the case.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com