Central banks have an essential duty to create extra money. They do so on a consistent basis in normal times. Their extra money comes in two forms: as notes and coins, and in the deposits private banks keep with their central banks.

The sum of the notes and the deposits issued by the SA Reserve Bank (the money base) grew by 7.9 times between 2000 and April 2020, from R35bn to R275bn — erring until recently (after 2014) on the side of issuing too much...

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