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They have a fixed reserve ratio, so they can’t “create money” unless more deposits come in. Can you point me to a source supporting that idea that lending from
by jiofih 5y ago
They have a fixed reserve ratio, so they can’t “create money” unless more deposits come in. Can you point me to a source supporting that idea that lending from state banks was a main source of inflation?
- ulzeraj 5y ago> They have a fixed reserve ratio, so they can’t “create money” unless more deposits come in. Thats not true. https://www.forbes.com/sites/francescoppola/2017/10/31/how-bank-lending-really-creates-money-and-why-the-magic-money-tree-is-not-cost-free/ https://www.forbes.com/sites/francescoppola/2017/10/31/how-b... > Can you point me to a source supporting that idea that lending from state banks was a main source of inflation? http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0102-69092011000300012 http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0102...
- jiofih 5y ago> where they extend loans as a multiple of the deposits they already hold > Commercial banks’ ability to create money is constrained by capital This “throw random links I found” argument strategy is not very good. I strongly recommend reading the stuff before posting as your “source”. That paper is exactly what I’m talking about - a revisionism attempt by a right-wing professor trying to frame what happened under a completely different light. It presents an hypothesis with little backing, but yeah, now you can point to the paper itself…