For the bank? Not sure if I’m just rephrasing what you’re saying, but I’d say that the money from which the bank issues the bonds is comprised of the interest generated by loans, and this is supported by the deposits over which the bank has custody, no?and the money which it issues is essentially the same, just v short term bonds
But I don’t see how this can be called a bond, when bonds are more defined by interest yield upon maturity, right?"money" is really just a v short term bond issued by a bank
This I agree with, or else increase interest rates.so if a bank wants to increase the money supply it must increase its liabilities
banks *create* moneyFor the bank? Not sure if I’m just rephrasing what you’re saying, but I’d say that the money from which the bank issues the bonds is comprised of the interest generated by loans, and this is supported by the deposits over which the bank has custody, no?
Yeah I don’t think I ever disagreed to this, I’m just having trouble understanding the dynamics of liability involved in private money issuance.this situ is totally diff to crypto
bond is just a debt. money can be modelled as a bond with a zero coupon payment.But I don’t see how this can be called a bond, when bonds are more defined by interest yield upon maturity, right?
its not a question of private vs otherwiseYeah I don’t think I ever disagreed to this, I’m just having trouble understanding the dynamics of liability involved in private money issuance.
Ok this makes more sense to me.bond is just a debt. money can be modelled as a bond with a zero coupon payment.
Well the only reason I say private is to contradistinguish it from the likes of Bitcoin, the closest thing to publicly issued money I can imagine.its not a question of private vs otherwise
No, because until Bitcoin they’ve all been privately issuedright thats the standard def. but can you think of an example thats not a financial liability?