The present study analyzes the delimitation of money creation's major theories developed by the Banking School, on the one hand, and the Currency School, on the other hand. We took into account a series of researches on how the adopted banking policy is influencing the economic performance and...

The paper answers three questions.(1) Does it matter if a central bank suffers a large capital loss? (2) Can the central bank become insolvent? (3) When, how and by whom should the central bank be recapitalised?