But an expanding monetary base will not create inflation if the money is not lent out.
These deposits were then lent out and with the losses that have been incurred have created the current situation.
The copy of Fisher's book which The Economist borrowed from the London Library was last lent out in 1978.
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Dollars that had been lent out through the Fed's various borrowing facilities were then soaked up in its open-market operations.
For one, money saved is money that, if left in the bank, is lent out to entrepreneurs and businesses eager to grow.
Some 489bn euros had been lent out in December 2011, and it is from this first batch that loans will be repaid early.
According to her lawyers, she received money from investors that she plowed into her own business as well as lent out to others.
Among the European stocks that are sensitive to the economy and were being heavily lent out were airlines like British Airways and Air France-KLM.
Chinese banks lent out record sums of money in the past few years in a bid to sustain growth amid the global financial crisis.
In a normally functioning economy, when the central bank buys government bonds, it injects money into the banking system where it will be lent out, facilitating growth.
If your stock is lent out, instead of real dividends, you receive something called "payments in lieu of dividends, " which aren't eligible for the lower 15% rate.
Back when Baruch Herzfeld was running Traif Bike Gesheft Yiddish for "non-Kosher bike shop" he found great demand among local Hasidim for his rental bikes, which he often lent out free.
When consumers put more of their money in their savings accounts, the funds would be lent out to finance the production of factories, machines, computers and other forms of physical capital.
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HarperCollins sells e-books to libraries at prices comparable to those it charges consumers, but each e-book can only be lent out 26 times until the library has to buy another copy.
Asked about the huge amount of excess reserves sitting at the Fed, rather than being lent out by the banks, Bullard chose to speak of the possibility to tighten policy through interest.
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Not until some of that increase in money base starts getting lent out and bleeding into broader measures of money (M2 see the graph from Fisher Investments research) will inflation start heating up.
In Diebold's case, like many others, his 401(k) plan appears to be contractually on the hook for any decline in the value of collateral received in exchange for the securities it lent out.
The danger is to think that rapid increases in the monetary base will keep nominal interest rates permanently lower and that the excess reserves will not eventually be lent out in search of higher returns.
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Mitchell, in his unfortunate video says that if the government did not borrow more to fund the deficit this money would go into the private banking system, be lent out and have a better economic effect.
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Reijtenbagh had sold Gerrit Berckheyde's painting of a famous Amsterdam canal to Amsterdam's Rijksmuseum, which had lent it out for exhibition to the National Gallery of Art in Washington, D.
It had the effect of forcing anyone who lent the stock out to call it back in, forcing shorts to cover their positions.
And I want to eat better, and eat better meat, meat that's not been factory farmed, once we get out of Lent.
He has come out of retirement for one last case: to try and find out why she was lent so much money.
Since then, Mr Snow points out, donors have repeatedly lent poor countries fresh money to help repay old loans gone sour.
At the end of his life, he spoke out in defence of dissidents and lent his support to the reforms of President Muhammad Khatami reforms designed to make the courts less vulnerable to the whims and passions of judges.
For the last couple of days, I've been trying out the most expensive gadget anyone has ever lent me.
In other market-sensitive news, there was more dour news coming out of the European Union Wednesday, which also lent to risk aversion among traders and investors worldwide.
Still, the Fed has lent so heavily to the most beleaguered financial firms that it is running out of bonds.
So much money was lent so quickly that Chinese bank regulators spent the better part of 2010 just figuring out where it all went.
Under the original Bretton Woods system, Mr McKinnon points out, America borrowed on a short-term basis from Europe, but lent long, making enormous direct investments in the rebuilding of Europe's war-blasted capital stock.
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