jim devine said...

"I know all about it. It's why the money supply hasn't increased as
much as it normally would given the Fed's expansionary policies.

Why the interest in this issue? are you in favor of Friedman's old
proposal (which he dropped) that there should be 100% reserve
requirements? in practice these days, it's working: bank excess
reserves exceed 100% of checkable deposits!"

nope. precisely the opposite. some people talked about the abolishment
of fractional reserve banking in that thread. that to me shows no
awareness of how banks actually create money, this is something i was
surprised at given the acceptance of (some parts) of minskyan theory
here (minsky of course being a very early proponent of endogenous
money).
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