Dimitri Papadimitriou claims full reserve banking is chronically dependent on what he calls “demand injections”. Hilarious.
So how would he characterise the billions or trillions recently spent to prop up the existing FRACTIONAL RESERVE system? For me, the words “chronic” and “dependent” spring to mind. How about you?
But it’s worse than that. The above trillions are a SUBSIDY of banks. In contrast, “demand injections” cost nothing in real terms. Though unfortunately, economic illiteracy amongst so called “professional” economists is such that half of them don’t understand the latter point.