That’s an assumption about what I meant, but the fact is both create money. Banks loan out new money, which must only be matched by deposits equal to a small percentage of their outstanding loans specified by the reserve requirement. Which not too long ago IIRC was temporarily removed entirely.
Right but that’s a lot different than the loan being discussed here, which is when the bank capitalizes its own loans via deposits.
That’s an assumption about what I meant, but the fact is both create money. Banks loan out new money, which must only be matched by deposits equal to a small percentage of their outstanding loans specified by the reserve requirement. Which not too long ago IIRC was temporarily removed entirely.