Representational Monetary Identity

Let us analyze what happens in commercial banking. First we have a deposit. Then we have a loan of up to a fraction (of 90%%) of this deposit. Finally the borrower can deposit the borrowed money into another bank account in the same bank or not. Suddenly the trillion dollar question emerges: is the borrowed money in these two bank accounts... the same? On the one hand the answer is yes: all borrowed money came from the original deposit---so it is that same original money. On the other hand the answer is no: all money deposited into the borrower’s account possibly stays in the original depositor’s account---so it is not that same original money. How can that be? (Digital version: omniequivalence/representational-monetary-identity/)