A New Beginning Model 2

A New Beginning Model #2

In model #2 the actors begin with exactly the same position as they did in model #1. The bank balances of the actors adds up to the same deposit liabilities amount and the same total amount of money.

As in the previous model, our grower friend starts with no money.

Grower	Dealer	Bank	Money/Deposits
Opening Balance: $0.00	Opening Balance: $2,250	Opening Balance: $1,250.	Total Money: $3,500. Deposit Liabilities: $3,500.

Grower

Dealer

Bank

Money/Deposits

Opening Balance:
$0.00

Opening Balance:
$2,250

Opening Balance:
$1,250.

Total Money: $3,500.

Deposit Liabilities: $3,500.

As before, all parties have accounts at the bank for which the bank has deposit liabilities equal to total money.

On the next page, we again see the effects of the grower's loan from the bank...