Home Forum Political Economy “Money creation” and income redistribution Reply To: “Money creation” and income redistribution

max gr
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Interbank transfers, whether accomplished via physical check or electronic transfer, do not require an exchange of currency, just the exchange of liabilities (deposits).

Thanks Scot. Are you sure about that? I don’t see how it can make sense from an accounting point of view (deposits can’t just be striked-out by one bank and added to the balance sheet of the second bank). I believe the rest of your exposition (which I think is flawed) is connected to the above point, so maybe it would be helpful to sort it out first.

  • This reply was modified 3 weeks, 3 days ago by max gr.