3 ms·
I'd argue deposits are being destroyed as banks no longer have the assets to make depositors whole. Of course central banks seem to be adopting the position tha
by postingawayonhn 4y ago
I'd argue deposits are being destroyed as banks no longer have the assets to make depositors whole. Of course central banks seem to be adopting the position that no depositors will lose any money and everyone will be bailed out.
- JumpCrisscross 4y ago> central banks seem to be adopting the position that no depositors will lose any money and everyone will be bailed out Not the Fed per se. And that’s the point. Quantity of deposits in the system is preserved. Wealth down. Fed support of banks up. How this balances is uncertain, but nothing is unilaterally inflationary.