I do wonder if their interpretation is fully correct, though
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Nope. Canada and other countries don't even have reserve requirements, yet make loans. In the US The CB has to supply...
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needed reserves at end of the day to match how many loans were already made (if deposits aren't there). Loan issuance...
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is the driver, reserves follow. Strange but true.
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@Phlegmaticus that's why money multiplier story is false. Fullwiler is the best on this stuff: http://www.cfeps.org/ss2008/ss08r/fulwiller/fullwiler%20modern%20cb%20operations.pdf …
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