2

I disagree that it is off-topic and feel both the question and answers given are well put together.

Please feel free to share your thoughts on re-opening Who creates money? Central banks or commercial banks?

  • FYI - question has been re-opened. – Alex B Jul 6 '12 at 16:53
  • @alexb Yep I saw, thanks. – Kirill Fuchs Jul 7 '12 at 4:42
4

It simply should not have been closed.

We have already established that basic questions of economics will generally be on topic. The FAQ states that the following type of question is off-topic:

Academic questions about economics or questions about economics that have no bearing on personal finance

We cannot avoid the fact that some topics of economics have a bearing on personal finance. The difficulty is in making that determination.

That question is basically asking for a definition of an economics principle. Asking questions about such topics, in order to understand them, should certainly be on topic for this site when it's a topic you hear about in the news. It's not just an academic discussion and money creation does have a bearing on personal finance.

The site is named Personal Finance and Money, because it should be a touch broader than simply personal finance. It's certainly not supposed to be about economics, but there are many economics topics which are of interest to someone thinking about their personal finances. Obtaining a general understanding of how a central bank creates money and knowing if/how it has an impact on one's personal finances, should be a valid goal for a user of this site.

In my personal opinion, it doesn't matter if it actually applies to personal finance. Individuals in the process of thinking about their personal finances, in one way or another, will likely wonder about such a topic; if only because they heard talking heads flapping gums about it in the business news.

  • so does that mean your voting to re-open? – Kirill Fuchs Jun 24 '12 at 20:10
  • @KirillFuchs Obviously, I don't think it should have been closed. At this point, I'm not about to step in as a mod and open it. However, I must say that I'm starting to lean towards that. I don't see how asking a fairly basic question about money creation is off-topic when we hear that governments attempting to print their way out of financial trouble usually spells trouble for our pocketbooks. – George Marian Jun 26 '12 at 8:08
  • 1
    @GeorgeMarian I second the re-open. Agree there's an impact on the pocketbook. Go for it? – Chris W. Rea Jun 26 '12 at 15:41
1

I did not vote to close, as I was undecided. I am not voting to open as I am undecided to open as well :).

Essentially the way I look at it is, its a very interesting question. Very basics of economy. There are multiple concepts on how money gets created and circulated. So definately this cannot be answered as a single question, it would be more like a series of questions ...

Further In my opinion; understanding how money gets created does not really make much difference to personal finance.

The biggest risk is when lot of new user's come in and see this question, it would get associated with economics and may start asking economis question and then we get into issues with users pointing out if this was allowed why this one is getting closed.

  • 3
    Never make this type of a decision based on the new user. How you convey the decision will be influenced by the new user. However, the decision itself should be based on the desired scope of the site. – George Marian Jun 24 '12 at 19:21
1

I think the question is economic. If with economics.se closing, interesting economic questions are going to be welcome here, I'd not be against it. That would mean expanding the scope here.

I think you stand a better chance with "it's economic, but let's expand scope" as I'm in agreement, than to say the question itself isn't economic. (all with "in my opinion" disclaimer)

  • I am agreed with expanding the scope. I also think economics has an influence on personal finance, so it should be included. – Kirill Fuchs Jun 25 '12 at 3:30
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    @joe I don't recall the community ever agreeing that all economics questions were off-topic. – George Marian Jun 26 '12 at 6:53
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    "Academic questions about economics or questions about economics that have no bearing on personal finance" - this seems to indicate that to me. Along with the fact that there was an economics.se to differentiate. – JoeTaxpayer Jun 26 '12 at 15:48
  • @joe However, quite frankly, that is not what that indicates. If all economics questions were off-topic, it would simply be stated as that way. Such a statement would be quite clear and unambiguous. The reason it's stated as an example of what not to do is because of the difficulty of stating it as what to do. The site has money in the title for a reason. Meanwhile, you are misinterpreting the significance of economics.se. It wasn't a place for all economics questions. Those that fit into our definition of acceptable were, and are, still welcome here. – George Marian Jun 26 '12 at 16:25
  • Fair enough - 4 others read this the same. If it's a bit ambiguous, I'm all for clarification and moving on. – JoeTaxpayer Jun 26 '12 at 17:00

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