What was the first electronic creation of money?
Upvote:1
There are a number of concepts confused here, and it isn't possible to answer the question precisely.
Quantitative Easing - pioneered by the Bank of Japan circa 2007. This is the most probable answer to OP's question, but QE doesn't require electronic money or banks; the government can buy and sell bonds without a central bank, and can use those bonds to increase or decrease the money supply, so long as the government is comfortable with deficit spending.
Deficit spending - government spending beyond assets & revenues, but not through inflation - This happens in every war when the government commands that economic activity take place without remuneration. Although the exact conditions can be argued, the traditional first example of this is D'Israeli's financing of the Suez Canal backed by the full faith & credit of the British government.
Electronic money - This is a complex topic taught to every economic undergrad (and then gleefully forgotten by most of them at the first opportunity) - the dollars and cents (currency in circulation is only a tiny part of the monetary base MB. In the modern era the government should have little or no interaction with paper currency (with the exception of the Mint). All government accounts should be managed by Fractional Reserve Banking.
Fractional Reserve Banking - the difference between currency and money. The money you put in the bank doesn't stay in the vault. Every dollar deposited is the basis of tens of dollars of loans - so "money is created".
Inflation - where the government devalues the currency by printing more currency. This has a history reaching back as long as there have been coins. Inflation creates money (although electronic inflation is relatively recent). Inflation is the tax that nobody needs to vote for, and is the dirty little secret that goldbugs don't want anyone to talk about. Aside: "Inflation is always and everywhere a monetary phenomenon" Milton Friedman Discussion of inflation as a consequence of monetary/fiscal policy is outside the scope of this answer (and I'm not competent to do it tersely), but Friedman's quote is relevant to OP's question. (thanks to Mr. Geerkens for the reminder).
More post
- 📝 Good Introductory World History book?
- 📝 What did Ostian script look like?
- 📝 Is this accusation in the Declaration of Independence factual?
- 📝 Why did the north and south struggle to control the territories before the American Civil War?
- 📝 Is Lady Arabella Stuart wearing a Jewish symbol?
- 📝 Origins of Baptist colonists
- 📝 What language(s) were spoken in 11th century Romania?
- 📝 How did Tunisia's revolution (and Arab Spring) begin?
- 📝 Why didn't colonial empires exchange their colonies with others empire to make their territories whole?
- 📝 When did flogging and other corporal punishments get abolished in Europe?
- 📝 How could Eratosthenes measure the circumference of the Earth?
- 📝 Was Heinrich Himmler's death a suicide?
- 📝 Was the Provisional Government of the Republic of Korea part of the Allies or the Axis or neither?
- 📝 Why didn't the USA move to the left after WWII?
- 📝 Did the Red Army and German Army clash in Poland in 1939?
- 📝 What is the current location of the "Cauldron of Trun and Chambios" from August 1944?
- 📝 Did the Czech Legion bring POWs to Czechoslovakia? And if so, why?
- 📝 How blockadable was the Strait of Gibraltar before Operation "Torch?"
- 📝 What are good predictors of the construction year of residential buildings?
- 📝 When did we find out time of day changes with longitude?
- 📝 How tall was Brutus?
- 📝 Black & white marriage in the US in the past?
- 📝 What is the origin of US south region white people?
- 📝 What are these cubbies?
- 📝 How long did it take for a letter to arrive in England in the 1830s?
- 📝 Was England called England in the days of King Arthur?
- 📝 In historical accounts, what relevance did the color yellow have as it relates to cultures and custums?
- 📝 What happened to people who lived outside a castle when the castle was under siege?
- 📝 Was Rudolph Hess a moderating influence on Hitler?
- 📝 Martin Luther's 95 Theses
Source: stackoverflow.com
Search Posts
Related post
- 📝 What was the first electronic creation of money?
- 📝 What was the first solar eclipse that was demonstrably predicted in advance?
- 📝 What was the first battle in history fought by vast-majority-% "distance-shooting" non-mechanized force?
- 📝 What / When was the first use of concentration camps in history?
- 📝 What was the first known war in history?
- 📝 What was the first successful mass tank battle of WW1?
- 📝 What was the first successful non violent independence movement?
- 📝 In what language was the first Zionist congress in Basel in 1897 held?
- 📝 What was the first spy agency?
- 📝 What was the first map of Antarctica having a shape based on real evidence?
- 📝 What was the first major historical event to be photographed?
- 📝 What was the first example of a foreign mercenary unit?
- 📝 What was the first documented mention of American English different from British English?
- 📝 What was the first broadcast television programme?
- 📝 What was the significance of the BEF moving into the gap between German forces in First Battle of the Marne?
- 📝 What was the first recorded instance of sex or violence being inappropriate for children to see?
- 📝 What was the first instance of native Americans using gunpowder weapons in battle and did they ever make their own powder?
- 📝 What was the first recorded use of Aerial Weapons in warfare?
- 📝 What was the first confirmed use of black powder to blow stuff up in war (in China and in Europe)?
- 📝 What was the first emergency management agency in the world?
- 📝 What was the average age of first marriage in 18th century Russia?
- 📝 What was the first health insurance company in America?
- 📝 What was the first supranational organization?
- 📝 What was the first recorded instance of burning a city or village in war?
- 📝 What was the reason of extreme anti-Communism in the first half of 20th century?
- 📝 What was the first assassination/murder recorded on film?
- 📝 What was the first book translated from Japanese to any of the European languages?
- 📝 What was the outcome of the first tank battle?
- 📝 What is the first example of a nation where the first railroad network system was somebody's master plan?
- 📝 What was the first scientific article to give a recognisably "modern" citation to another article?
