Qualifiers are certainly important in this case, it frustrates me no end that mainstream media can't distinguish these. Thanks for your insightful comment.
Steve Keen has an interesting article on endogenous money at www.debtdeflation.com. Bernanke has increased M0 drastically in an effort to stave off deflation (I guess asset price deflation is the key in this case), but Keen believes it won't work because our system is not a true fiat money system but a credit money system with a fiat money subsystem tacked on, and in the current circumstances banks/companies are not going to expand credit no matter what happens to M0. That is, banks lend money first, then go hunting for reserve supply (M0) to back it up, opposite to the text book theory for how the money supply works.
Steve Keen has an interesting article on endogenous money at www.debtdeflation.com. Bernanke has increased M0 drastically in an effort to stave off deflation (I guess asset price deflation is the key in this case), but Keen believes it won't work because our system is not a true fiat money system but a credit money system with a fiat money subsystem tacked on, and in the current circumstances banks/companies are not going to expand credit no matter what happens to M0. That is, banks lend money first, then go hunting for reserve supply (M0) to back it up, opposite to the text book theory for how the money supply works.