Fractional Reserve Banking

The way that fractional reserve banking is explained sounds at least like an act of magic: depositing the same money at several banks increases the money supply. I don’t have a lot of thought on this yet, but here are a few links I’m going to read an digest:

https://zippycatholic.wordpress.com/2012/11/28/money-in-the-bank-is-not-like-money-in-the-bank/

https://zippycatholic.wordpress.com/2015/10/31/banking-castles-built-with-black-magic/

http://whatswrongwiththeworld.net/2015/04/fractional_reserve_creation_of.html

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7 Responses to Fractional Reserve Banking

  1. Zippy says:

    I hope you find them useful. Also this one counts as a clarification of the “Banking Castles” post:

    https://zippycatholic.wordpress.com/2015/11/06/out-of-student-loans-and-treehouse-homes-we-all-would-take-the-latter/

    (That is, it clarifies precisely what is exchanged for what in a non-usurious bank loan).

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  2. semioticanimal says:

    Thank you. I will read it. You are one of the few people who have talked about these topics under the aspect of realism that I’m attempting as well. I apologize if the pingbacks are too frequent and/or obnoxious.

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  3. Zippy says:

    It should be an interesting challenge to reconstruct (parts of) economics along metaphysically realist grounds. As far as I know it has never been done: all modern economic theories rest upon anti-realist reductionisms.

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  4. semioticanimal says:

    Quite a challenge. I’m finding the greatest difficulty is that there is no living tradition of realist economics. While I’m attempting to work in a more or less Thomistic intellectual tradition, I’ve yet to find Thomists interested in economics or economists interested in realism, let alone Thomism. The result is that find myself take the cue from modern economics, which involves more of an initial un-doing of errors before a positive progress can be made.

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  5. Pingback: Fracting the Money Supply | Infinite Semiosis

  6. Pingback: Money of the Money Supply – Part 2 | Infinite Semiosis

  7. Pingback: Fractional Reserve Banking and Usury | Infinite Semiosis

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