OscarK
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I am not arguing with you, Marc. My argument is that several central banks obviously have felt the need to declare what they know as a fact in a world full of neoclassic people like Krugman. Too many ordinary people understand how money is created and they will loose their trust in central banks that plays along with the Krugmans. Loosing public trust is a price that a central bank cannot afford.
Deutsche Bundesbank was first. This is published in 2009: https://www.bundesbank.de/Redaktion/DE/Downloads/Service/Schule_und_Bildung/geld_und_geldpolitik_kapitel_3.pdf?__blob=publicationFile.
See page 70 “Geldschöpfung”Why did Riksbanken and the Bank of England do this? I know that Riksbanken over the last years have got an increasing number of questions from the public who obviously know how money is created. Since the central bank is dependent on being trustworthy in the eyes of the public, they have reached a point where they needed to act. This action, however, means that the risk of loosing public trust is transferred to the politicians. So now they have the ball.
It’s a big thing that a central bank publishes the true description of how money is created. The Swedish central bank, Riksbanken, did that in June 2013 by including a chapter on creating money in their annual publication The Swedish Financial Market 2013. See pages 74 – 77. https://www.riksbank.se/Documents/Rapporter/Finansmarknaden/2013/rap_finansm_130830_eng.pdf
