kqr 1 day ago

Not GP, but there are two senses in which I think it could be meant:

- Currency no longer has to be backed by some fraction of shiny objects,

- Banks do not need to arrange CB reserves before making loans -- they make loans and then secure the needed CB reserves.

1
eru 1 day ago

That's still all fractional reserve banking.

Btw, in the US there's lots and lots of bank reserves: https://fred.stlouisfed.org/series/TOTRESNS