Can private banks control money supply?
There's a group called positive money (http://www.youtube.com/watch?feature=player_embedd... that say banks (in the private sector) can create money, surely this is a role only the central bank (Bank of England) has through quantitative easing?
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Private banks can increase the cost of money and reduce the money supply but they ultimately lose business if the central bank lowers rates. Other banks can get in and lend, increasing money supply.