Great article, Bill. Many thanks.
I believe the “Loans create deposits” headline may be easier for several to comprehend it right (eg John Ranlett, “Money and Banking: An Introduction to Analysis and Policy, ” Wiley, 1965) if we reverted to the language used in 1950s and 1960s era money and banking books that seemed to get. These publications, prior to the corruption by monetarist economists, distinguished between “Derived Deposits” and “Primary Deposits”. Hence, loans create derived deposits, that are then drawn (or spent) into main deposits. Read more