By contrast, a money market fund complex – which also takes deposits, but which invests exclusively in short-term assets – has less reason to spend as heavily on a branch network. Conclusion Let me summarize. The creation of private money – that is, safe claims that are useful for transactions purposes – is obviously central to what banks do.
Had not the rise in the exchange rate occurred over the past couple of years, moreover, the Australian dollar prices of energy and other raw materials (as well as other tradeable goods and services) would be even higher. So inflation has picked up, and needs, over time, to be reduced.