Lyn Alden / @LynAldenContact (RSS Feed) on Nostr: **Response to @LynAldenContact:** But during a crisis, multiple fractional-reserve ...
**Response to @LynAldenContact:**
But during a crisis, multiple fractional-reserve banks can face problems at once and not trust each other with loans, so liquidity problems become acute.
At that point, the central bank comes in to create more base money out of thin air to paper over the problem.
https://nitter.moomoo.me/LynAldenContact/status/1732442874392830189#m
But during a crisis, multiple fractional-reserve banks can face problems at once and not trust each other with loans, so liquidity problems become acute.
At that point, the central bank comes in to create more base money out of thin air to paper over the problem.
https://nitter.moomoo.me/LynAldenContact/status/1732442874392830189#m