WiM026 - Money Hierarchies with Nik Bhatia
The "What is Money?" Show
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The Fed's Own Notes
The federal reserve is the first intermediate layer. You then have private sector banks, which are custodying and agest both reserves and notes. Then finally have deposits, which are what we the money we hold in chek and saving scouts,. Andd with the fed. What happened was the banks issuing their own notes. Then that was now made illegal. That was, the banks couldn't have their own cash circulating. They were allowed to have their own deposits that a, you know, circulate throughout the financial system as banks wire money to each other. But those had a place in the old financial system; they don't have a place any more.
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