RBNZ bulletin confirming banks create deposits when issuing loans, showing a balance sheet double-entry accounting operation.
No loanable funds.
No money multiplier.
Reserves (settlement cash) not a constraint on lending.
Well well well. #MMT
rbnz.govt.nz/-/media/518b01…
No loanable funds.
No money multiplier.
Reserves (settlement cash) not a constraint on lending.
Well well well. #MMT
rbnz.govt.nz/-/media/518b01…
Further, I think fair to say the paper also states paying taxes deletes money (reduces settlement cash) while gov spending creates it (increases settlement cash).
QE is an asset swap folks. 🫢
Reserves created as a byproduct if purchasing gov TSY bonds from the non-bank financial sector, but not monetary stimulus.
Reserves created as a byproduct if purchasing gov TSY bonds from the non-bank financial sector, but not monetary stimulus.
So… did they just join BOE, Bundesbank, etc in stating (kind of) directly textbook lOaNabLe fUnDs & money multiplier theories are wrong? 🤔
Most curious for your views @ProfSteveKeen @StephanieKelton @DEhnts @StevenHailAus @billy_blog 🙏🏼
Most curious for your views @ProfSteveKeen @StephanieKelton @DEhnts @StevenHailAus @billy_blog 🙏🏼
apologies, meant to include @tymoignee 🫡
PS - wait… *savers*?? (oh noes! 🥺) But I believe this is referring to liquidity etc; ie, to attract deposits. 😮💨 Still, phrasing!
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