Doesn't even cover how the banks can basically print money because if you have access to negative real interest loans from the central bank at any volume you desire (in fact has to print proportional to lending due to reserve ratio requirements), then it is equivalent to you possessing the money printer yourself.
When the interbank lending rate is above a negative real interest rate then it is a superposition between taking a real loan and printing money.
It happens to be above a negative real interest rate right now, but you can imagine if the rates ever become negative (which they have) they can at that moment print all the money they want then.
[ + ] x0x7
[ - ] x0x7 2 points 1.1 yearsMar 26, 2024 14:40:07 ago (+2/-0)
When the interbank lending rate is above a negative real interest rate then it is a superposition between taking a real loan and printing money.
It happens to be above a negative real interest rate right now, but you can imagine if the rates ever become negative (which they have) they can at that moment print all the money they want then.
[ + ] Moravian
[ - ] Moravian 0 points 1.1 yearsMar 26, 2024 23:41:12 ago (+0/-0)