B is creditworthy. That’s why I leant it to him. If I have an issue with liquidity I go to the discount window of my central bank and they will lend me the money.
That’s why central banks typically make the rules about reserves, etc.
That’s why central banks typically make the rules about reserves, etc.
Yes. But that means you got newly created base money from the central bank. Which sort of goes against the original claim.