dlakelan ,
@dlakelan@mastodon.sdf.org avatar

@economics-that-works #economics #mmt #money

Steve Keen discusses the money creation mechanisms here https://profstevekeen.substack.com/p/why-are-economists-trying-to-hide

A thing I think he doesn't give enough attention to is the role the Fed DOES play. The Fed indirectly controls bank lending rate through a couple mechanisms. The first is whatever rules it has for declaring a bank solvent. They've eliminated reserve requirements but now it's something like a stress test or whatever. A bank can't keep lending

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