GhostOnTheHalfShell OP , 24 days ago @gooba42 @economics-that-works Technically incorrect. Per MMT, banks don't lend from anything. Lending creates an asset (bank wealth, but not "money") and deposit at the same time. Credit money (the deposit) is created ex-nihil. A bank may need the Fed to give it reserves to cover the deposit if its value is to be transferred to another bank. The lending capacity of a bank is governed by its deposit-market-share, its flows and the ability of borrowers to pay
@gooba42 @economics-that-works
Technically incorrect. Per MMT, banks don't lend from anything.
Lending creates an asset (bank wealth, but not "money") and deposit at the same time. Credit money (the deposit) is created ex-nihil.
A bank may need the Fed to give it reserves to cover the deposit if its value is to be transferred to another bank.
The lending capacity of a bank is governed by its deposit-market-share, its flows and the ability of borrowers to pay