Is the zero reserve ratio requirement what you are referring to here? Thus allowing banks working directly with the Fed to have zero "real" dollars in existence for customer deposits?
I believe this is not true for all banks, but surely is shocking that this measure is in place, as it is unclear what holds those primary banks from lending to any extent they wish. I must be missing something.
I believe this is not true for all banks, but surely is shocking that this measure is in place, as it is unclear what holds those primary banks from lending to any extent they wish. I must be missing something.