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This is false for a fixed regulatory capital and when subjected to time domain analysis: Banks do not lend out reserves and a particular bank’s ability to expand its balance sheet by lending is not constrained by the quantity of reserves it holds or any fractional reserve requirements that might be imposed by the central bank. — Nathan Becker (@netbacker) July 14, 2018 Not taking issue with netbacker but perhaps the one who put this idea in his head...
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This is false for a fixed regulatory capital and when subjected to time domain analysis: Banks do not lend out reserves and a particular bank’s ability to expand its balance sheet by lending is not constrained by the quantity of reserves it holds or any fractional reserve requirements that might be imposed by the central bank. — Nathan Becker (@netbacker) July 14, 2018 Not taking issue with netbacker but perhaps the one who put this idea in his head...
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Mike Norman considers the following as important:
This could be interesting, too:
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This is false for a fixed regulatory capital and when subjected to time domain analysis:
Banks do not lend out reserves and a particular bank’s ability to expand its balance sheet by lending is not constrained by the quantity of reserves it holds or any fractional reserve requirements that might be imposed by the central bank.— Nathan Becker (@netbacker) July 14, 2018
Not taking issue with netbacker but perhaps the one who put this idea in his head...