3 ms·
How do you mean? Why do you say the fractional reserve bit is irrelevant?
by geysersam 5y ago
How do you mean? Why do you say the fractional reserve bit is irrelevant?
- hgomersall 5y agoI mean reserves don't actually constrain lending: http://www.debtdeflation.com/blogs/2012/04/02/ptolemaic-economics-in-the-age-of-einstein/ http://www.debtdeflation.com/blogs/2012/04/02/ptolemaic-econ... Edit, also: http://www.debtdeflation.com/blogs/2012/03/29/krugman-on-or-maybe-off-keen/ http://www.debtdeflation.com/blogs/2012/03/29/krugman-on-or-...
- throw0101a 5y ago> Why do you say the fractional reserve bit is irrelevant? Fractional banking hasn't been a thing for decades. Tobin called re-loaning deposits the "Old View" in 1963: * https://cowles.yale.edu/sites/default/files/files/pub/d01/d0159.pdf https://cowles.yale.edu/sites/default/files/files/pub/d01/d0... Some countries haven't had reserve requirements for over thirty years: * https://en.wikipedia.org/wiki/Reserve_requirement#Canada https://en.wikipedia.org/wiki/Reserve_requirement#Canada Roche has a good paper on the modern monetary system: * https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1905625 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1905625 See also the Bank of England: * https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/money-creation-in-the-modern-economy https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/m...