There is a From Alpha 2 Omega podcast Oh So Reserved that is worth listening to.
This weeks our guest is Dan Kervick. By day Dan works in the book publishing industry. By night, Dan is an independent scholar, specialising in the work of the British Philosopher David Hume, and a regular blogger on progressive and egalitarian economics over on:
We discuss the institutional working of the banking system, how reserves really work, bubble blowing and the logic of quantitative easing, military Keynesianism, and the role of capital flows in the modern economy.
I think Dan has provided a good explanation of how things actually work in the economy and banking system. There are a few places that could stand further clarification, but there is only so much you can say in 45 minutes. One of the places that could use some extended discussion is the relation between the huge excess reserves of the banks and the loans that are not being made. Maybe Dan is right about one not causing the other, but it is more that one is a symptom of the other the other. (Correlation, not causation. Or causation in the other direction.)