Double-entry monetary system · toy model

Reserve Plumbing

Eight interlocking balance sheets — the Fed, Treasury, two commercial banks, a primary dealer, a money fund, the public and the foreign sector. Pull a lever; every posting flows through as balanced double entries and the books reconcile. A capital & liquidity layer (SLR, CET1, LCR) tracks how much dealer/bank intermediation the regime actually allows.

Books reconcile

Bank capital & liquidityRisk-based capital, leverage (SLR) and LCR — the regulatory limits on how far banks can extend their balance sheets to intermediate dollars.

Journal & flow log