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central bank gives money to the business banks who then give that money to people companies and government agencies/units.

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The central bank gives money to the business banks who then give that money to people companies an Show more The central bank gives money to the business banks who then give that money to people companies and government agencies/units. When a government controls the central bank why doesnt the government lend money from it instead of business banks? That way they would have: a lower interest rate control on their interest rate theoritically no limit etc. My question is only about where the government gets the money. Im not suggesting that the central bank should lend money directly to people or companies. Show less

 
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