If there was (conceptually) just one business bank then all the new credit score (cash) created would be redeposited in that financial institution (or held as bodily cash exterior it) and the requirement for interbank lending for this purpose would cut back.
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Extra precisely, the target federal funds price equals the long term actual interest price, plus the present inflation rate, plus coefficients multiplied by the deviations between real and goal inflation and the deviations between actual and potential output.
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If there was (conceptually) just one business bank then all the new credit score (cash) created would be redeposited in that financial institution (or held as bodily cash exterior it) and the requirement for interbank lending for this purpose would cut back. https://qwaeew.blogspot.com/2025/01/l4ntjho04t.html