Banks are special entities in the real economy due to their ability to create money ex-nihilo (i.e. “from nothing”). What this money is created for (lending) and where it flows (spending) has tremendous influence in determining rates of economic growth, consumer price inflation, and financial asset price inflation.
Agree, thank you. It is hard for someone who does not work with this to keep up. Terminology, accounting praxis, etc is hopeless to just learn in one spot. Context gives a lot of intuition and is really speeding up the learning processs. The level at which you put this is perfect for me!
An excellent summary
Agree, thank you. It is hard for someone who does not work with this to keep up. Terminology, accounting praxis, etc is hopeless to just learn in one spot. Context gives a lot of intuition and is really speeding up the learning processs. The level at which you put this is perfect for me!