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They can create money.
Banks create money by lending.
When banks make loans, they create money.
The federal government can create money.
We create money, and almost all of it as debt.
An adage among economists is that "the Fed creates reserves and banks create money".
High gloom ReprintsWith the power to create money, Mr Draghi owns the biggest gun of all.
Of course, we need to shelter this power to create money from vote-seeking politicians.
The process by which banks create money is so simple the mind is repelled.
So the ECB won't create money when it comes in to support indebted countries.
Without anyone noticing, the power to create money was privatised by stealth.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com