The Romanian Central Bank
10% (15 votes)
Private banks owned by foreign EU nationals
87% (125 votes)
Private banks owned by Romanian nationals
3% (4 votes)
Total votes: 144
Understanding the concept of money.
Understanding the money creation process under fractional reserve banking.
Understanding the concepts of money base, money supply and money multiplier.
Understanding the relationship between money growth and inflation (the quantity theory of money).
Understanding the concept of seigniorage or inflation tax.
Understanding that all those who create money, i.e. the central bank and commercial banks, benefit from this process at the expense of existing money holders.
Identifying the main beneficiaries of the inflation tax in Romania.