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Except none of that is true. https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf https://www.ban

• eru 2y ago
  That's a long PDF. What do you want to refer to in particular? Btw, you might want to study the section 'Managing the risks associated with making loans'. The pdf is pretty vague about the limits of creating these loan/deposit pairs in general. But there's eg this: > One way in which they do this is by making sure that they attract relatively stable deposits to match their new loans, that is, deposits that are unlikely or unable to be withdrawn in large amounts. This can act as an additional limit to how much banks can lend. For example, if all of the deposits that a bank held were in the form of instant access accounts, such as current accounts, then the bank might run the risk of lots of these deposits being withdrawn in a short period of time. In general, the limit to loan/deposit pair creation is withdrawals and transfers of the new deposits. --- Btw, I agree that fractional reserve banking can create money. (Just not base money, and not without limits.)
  • hgomersall 2y ago
    No, the limit is Basel III: https://en.m.wikipedia.org/wiki/Basel_III https://en.m.wikipedia.org/wiki/Basel_III