Here’s a question: who creates money?

If you answered the Federal Reserve, I’m sorry but you’re going to have to repeat the 4th grade. Commercial banks create money. This system of money creation has an inherent advantage that the gold standard lacks: flexibility. Banks can create more $$$ when demand for money is strong, spurring economic growth. If demand for $$$ is sluggish, banks won’t loan. Alternatively, there may be a lot of money demand but banks still won’t lend for a multitude of reasons. That’s a rabbit hole too deep for the purposes of this article…