zlacker

Being financially literate means being able to understand how the financial system works. Larry Summers thinks operate as intermediaries lending out deposits. This is very wrong. He is not financially literate. He is an economist.

>>mempko+(OP)
I think Larry Summers probably knows what a central bank is.

But "how money creation works" isn't the same thing as "how the financial system works". I guess the financial system mostly works over ACH.

We can see what happens when banks don't lend out deposits, because that's basically what caused SVB to fail. So by the contrapositive, they aren't really operating then.