@GhostOnTheHalfShell
Interested to watch this. Rereading Selgins paper it's not obvious there's a real discrepancy other than semantics. Banks need reserves. Reserves come from deposits, interbank loans, Fed purchases, etc. everyone agrees to this. The best way to describe the system is "banks create money in amounts limited by the govt policy, depositor amounts, the size of the bank, and the size of other banks." @economics-that-works
But per Graziani, reserves matter less the more deposit market share a bank has.
The larger they are, the more likely transfers occur endogenously, but beyond that an environment of large whales is very different than one of minnows.
Consider also that in our digital world, all transactions occur electronically. "Money" never leaves banks. They collect rent on every transaction.