Daniel H. Neilson

In conversation recently, I was called upon to defend the claim that banks are in the business of creating and destroying private money.

Discussion of the results of the ECB’s LTRO2 has revolved around the question of hoarding, specifically whether banks are using the newly-created reserves to fund new lending.

Perry and I extend our apologies for the unplanned hiatus. By way of breaking radio silence, it seems appropriate to check in on our two favorite banks.

A money view of SDRs