Base Money and Free Markets | The Snider Series | Episode 7 (WiM109)
The "What is Money?" Show
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Is the Federal Reserve an Accounting Fiction?
"The bank reserve is an accounting fiction, more or less," he says. "It's all what the central bank does." Commercial banks don't influence their balance of bank reserves, except as if they're used for settlement in some kind of inter bank transaction. Theoretically you could theoretically call them up and say, i want palets of cash,. because you have the right to convert into physical cash. Now, no bank is ever going to do that, or esse as its name is.
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