GhostOnTheHalfShell OP ,
@GhostOnTheHalfShell@masto.ai avatar

@economics-that-works

“ d/dt Deposits = The equation describing this process is simply the translation of the Bank’s English into the formal language of mathematics. … This equation then is the mathematical form of the Bank of England’s declaration that “bank lending creates deposits”: d/dt Deposits = Lending

I still nit here over terminology. The bank ledger records a loan. Lending is an process, more like, a function, which creates both loan and deposit.

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