Translation of "Credit creation" in German

For one thing, credit creation by the banks continued to be slow-moving.

The central problem is that credit creation and distribution is in the hands of private companies - the commercial banks - and that is true outside, as well as inside, the eurozone.

After all, successful economic development – in countries like the US, Germany, Japan, and China – has depended on domestic credit creation for productive investment.

And yet, through it all, growth rates have remained stubbornly low and unemployment rates unacceptably high, partly because the increase in money supply following QE has not led to credit creation to finance private consumption or investment.

But Claudio Borio and Piti Disayat, economists at the Bank for International Settlements, have argued convincingly that the savings-glut theory fails to explain the unsustainable credit creation in the run-up to the 2008 crisis.

They are some of the largest counterparties with the regular banking system, and their combined credit creation and proprietary trading and hedging may account for much of the global liquidity flows that make monetary and financial stability so difficult to ensure.

The positive effect of the stimulus package is simply not large enough to offset the negative impact of dramatically lower household wealth, declines in residential construction, a dysfunctional banking system that does not increase credit creation, and the downward spiral of house prices.

This, in turn, would further erode banks’ balance sheets and constrain credit creation – the sovereign-bank doom loop that we have heard so much about in recent years.

However, they can also lead to credit creation via maturity and liquidity transformation and allow market participants to build large exposures to each other.

This would also avoid moral hazard because bonds in a debit account could not be use for net credit creation.

On 28 April 2016, in pursuing its price stability mandate and to further ease private sector credit conditions and stimulate credit creation, the Governing Council adopted Decision (EU) 2016/810 of the European Central Bank (ECB/2016/10) [1].

The loanable funds doctrine, by contrast, does not equate saving and investment, both understood in an ex ante sense, but integrates bank credit creation into this equilibrium condition.

Macroeconomic stabilization in particular proved to be politically unfeasible, in part because no real control is being exercised over money and credit creation in the rouble zone (cf. section on CIS below).

It is far too late for one of their favorite remedies – abolition of central banks, supposedly the source of excessive credit creation.

So, too, are signs of newfound policy discipline – such as a central bank that seems determined to wean China off excessive credit creation and fiscal authorities that have resisted the timeworn temptation of yet another massive round of spending initiatives to counter a slowdown.

In their view, there was one cause, and one cause only of the crisis: the excessive credit creation that took place when Alan Greenspan was chairman of the US Federal Reserve.

Since banks are able to offer practically unlimited amounts of credit, and can thereby create money, capitalist states have tried to control and limit this credit creation in order to avoid precisely the kind of crisis like the current one.