Checking accounts are included in the money supply, without subtracting mortgages (what's considered 'as good as cash' are the balances of the buyer/seller, not

Checking accounts are included in the money supply, without subtracting mortgages (what's considered 'as good as cash' are the balances of the buyer/seller, not the assets of the 'holder' of the mortgage, which would be the bank), and issuing a bank mortgage definitely increases the money supply (so the bank doesn't have less money, it's created new money): https://www.federalreserve.gov/releases/h6/current/default.htm https://www.federalreserve.gov/releases/h6/current/default.h... (Table 1 footnotes) 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... https://www.imf.org/en/Publications/WP/Issues/2019/12/20/Money-Creation-in-Fiat-and-Digital-Currency-Systems-48843 https://www.imf.org/en/Publications/WP/Issues/2019/12/20/Mon... But yeah, we can agree that what's counted isn't the mortgage per se, but the balances of the buyer/seller (which came into existence when the mortgage was issued).