tag:blogger.com,1999:blog-6245381193993153721.post8028383471634600938..comments2024-03-28T17:08:15.784-07:00Comments on Social Democracy for the 21st Century: A Realist Alternative to the Modern Left: Wicksell on Endogenous MoneyLord Keyneshttp://www.blogger.com/profile/06556863604205200159noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-6245381193993153721.post-48562107899431124682014-12-14T06:51:57.947-08:002014-12-14T06:51:57.947-08:00https://econoblog101.wordpress.com/2014/12/10/wick...https://econoblog101.wordpress.com/2014/12/10/wicksell-a-keynesian/Janhttps://www.blogger.com/profile/13321416654318469280noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-85983534852187770572014-11-28T08:56:36.756-08:002014-11-28T08:56:36.756-08:00that bank might face a rising cost to borrow from ...that bank might face a rising cost to borrow from other banks to cover a net reserve outflow (or to attract depositors/other creditors), or it might not. It would only face bankruptcy if the value of its assets collapsed for some reason. Philippenoreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-12254204193201830792014-11-28T07:07:22.505-08:002014-11-28T07:07:22.505-08:00'The sum borrowed to-day in order to buy commo...'The sum borrowed to-day in order to buy commodities is placed by the seller of the goods on his account at the same bank or some other bank, and can be lent the very next day to some other person with the same effect"<br /><br />Wicksell appears to be assuming that all banks expand lending in unison. If that wasn't the case then interbank clearances would lead to banks that expand lending faster than others experiencing a drain in reserves that will lead to bankruptcy if not checked.Rob Rawlingsnoreply@blogger.com