11 ms·
Cash asset money != liability deposit money. FRB creates liability deposit money, not cash. Also these days, central bank reserve requirements don't really ha
by neffy 11y ago
Cash asset money != liability deposit money.
FRB creates liability deposit money, not cash.
Also these days, central bank reserve requirements don't really have much impact, it's more about the Basel capital controls when it comes down to control over lending and the resulting money creation.