GhostOnTheHalfShell ,
@GhostOnTheHalfShell@masto.ai avatar

@dlakelan @economics-that-works

The more likely deposits remain endogenous, the bank suffers no constrains or fiscal risk from them.

Only when people transfer to another bank or extract cash do the run into problems.

As far as reserves go, they settle between banks who minimize transfers by canceling mutual obligations and if they really need some reserves, they borrow it from the discount window (from the fed).

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