2 ms·
Creating loans and the money associated with them out of thin air doesn't cause the bank's liabilities to exceeed its assets though: they're simultaneously crea
by makomk 4y ago
Creating loans and the money associated with them out of thin air doesn't cause the bank's liabilities to exceeed its assets though: they're simultaneously creating an asset (the loan) and a liability (the money deposited from the loan) which exactly cancel out.