Here's a chart of large bank cash as a % of total assets:
In the run-up to the global financial crisis, large banks only had 2.5% cash as a percentage of their assets.
For decades, credit growth in aggregate outpaced base money growth, and rather than let it collapse in 2008, they created a lot of new base money.
For decades, credit growth in aggregate outpaced base money growth, and rather than let it collapse in 2008, they created a lot of new base money.
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