I’m with @Frances_Coppola on the main question here. 1. It’s complicated and systematic. 2. Banks create money by lending, but under constraints. 3. However, the “lending” is not uniform & it is conditional. 4. Animal spirits also affect the banks, and market panic.
https://twitter.com/Frances_Coppola/status/1579770614705192960
5. In the UK, not necessarily in other countries, most bank lending is for home mortgages. The market is churning as expected interest rates rise. 6. It seems likely in the UK, that this lending will collapse, so the increase in “money” will slow down, perhaps 🛑.
7. Meantime, the @bankofengland is intervening in the markets and issuing warnings. 8. The system is being shocked with unknown consequences. 9. We are in a global financial crisis, partly generated by #PostTruthEconomics
Accounts and institutional rules are central to what is happening @RichardJMurphy, but in a crisis they will be changed on the fly, as happened after Lehman in September 2008. Bankruptcies may be imminent. Wait and watch. Global financial reform is very urgent.
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