⚠️Automatic translation pending review by an economist.
Two entities have the power to create money.
First, the central bank: it creates money in the form of banknotes, coins (when this responsibility does not lie with the Treasury), or scriptural money. The latter form corresponds to « electronic » money held in commercial bank accounts, and unlike coins and banknotes, it is not included in the definition of « money » as defined by monetary aggregates.
Then there are commercial banks: commercial banks create money when they make loans. In the latter case, banks create a « receivable » item on their liabilities side and a deposit on their assets side, and it is in this respect that this operation corresponds to money creation (deposits being scriptural money).
J.P.
