dlakelan, @economics@a.gup.pe #economics #mmt #money
Steve Keen discusses the money creation mechanisms here https://profstevekeen.substack.com/p/why-are-economists-trying-to-hide
A thing I think he doesn't give enough attention to is the role the Fed DOES play. The Fed indirectly controls bank lending rate through a couple mechanisms. The first is whatever rules it has for declaring a bank solvent. They've eliminated reserve requirements but now it's something like a stress test or whatever. A bank can't keep lending