What was the first electronic creation of money?

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There are a number of concepts confused here, and it isn't possible to answer the question precisely.

  1. Quantitative Easing - pioneered by the Bank of Japan circa 2007. This is the most probable answer to OP's question, but QE doesn't require electronic money or banks; the government can buy and sell bonds without a central bank, and can use those bonds to increase or decrease the money supply, so long as the government is comfortable with deficit spending.

  2. Deficit spending - government spending beyond assets & revenues, but not through inflation - This happens in every war when the government commands that economic activity take place without remuneration. Although the exact conditions can be argued, the traditional first example of this is D'Israeli's financing of the Suez Canal backed by the full faith & credit of the British government.

  3. Electronic money - This is a complex topic taught to every economic undergrad (and then gleefully forgotten by most of them at the first opportunity) - the dollars and cents (currency in circulation is only a tiny part of the monetary base MB. In the modern era the government should have little or no interaction with paper currency (with the exception of the Mint). All government accounts should be managed by Fractional Reserve Banking.

  4. Fractional Reserve Banking - the difference between currency and money. The money you put in the bank doesn't stay in the vault. Every dollar deposited is the basis of tens of dollars of loans - so "money is created".

  5. Inflation - where the government devalues the currency by printing more currency. This has a history reaching back as long as there have been coins. Inflation creates money (although electronic inflation is relatively recent). Inflation is the tax that nobody needs to vote for, and is the dirty little secret that goldbugs don't want anyone to talk about. Aside: "Inflation is always and everywhere a monetary phenomenon" Milton Friedman Discussion of inflation as a consequence of monetary/fiscal policy is outside the scope of this answer (and I'm not competent to do it tersely), but Friedman's quote is relevant to OP's question. (thanks to Mr. Geerkens for the reminder).

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