2 ms·
Not GP, but there are two senses in which I think it could be meant: - Currency no longer has to be backed by some fraction of shiny objects, - Banks do not n
by kqr 2y ago
Not GP, but there are two senses in which I think it could be meant:
- Currency no longer has to be backed by some fraction of shiny objects,
- Banks do not need to arrange CB reserves before making loans -- they make loans and then secure the needed CB reserves.
- eru 2y agoThat's still all fractional reserve banking. Btw, in the US there's lots and lots of bank reserves: https://fred.stlouisfed.org/series/TOTRESNS https://fred.stlouisfed.org/series/TOTRESNS