Richard Werner did empirical tests of the theory you describe, and found it to be false: https://www.sciencedirect.com/science/article/pii/S1057521915001477 ht

Richard Werner did empirical tests of the theory you describe, and found it to be false: https://www.sciencedirect.com/science/article/pii/S1057521915001477 https://www.sciencedirect.com/science/article/pii/S105752191... And https://www.sciencedirect.com/science/article/pii/S1057521914001070 https://www.sciencedirect.com/science/article/pii/S105752191... Economists at the Bank of England re-ran these tests in an attempt to disprove the above theory and found themselves reaffirming it: https://www.bankofengland.co.uk/working-paper/2015/banks-are-not-intermediaries-of-loanable-funds-and-why-this-matters# https://www.bankofengland.co.uk/working-paper/2015/banks-are... It has since been reaffirmed by other central banks, including the Bundesbank https://www.bundesbank.de/Redaktion/DE/Downloads/Veroeffentlichungen/Monatsberichtsaufsaetze/2017/2017_04_geldschoepfungsprozess.pdf https://www.bundesbank.de/Redaktion/DE/Downloads/Veroeffentl...