Again, only to offset a system wide excess. Yes, the fed could still only act defensively in the money markets. Yes, and acting defensively in the money markets to maintain desired reserve balance or the equiv. Not complicated at all- offset operating factors. There is no proactive control through open market operations.
Overdrafts are loans that create deposits.
The M that includes these deposits grows accordingly. Loans create deposits, which we call money. This is a pk list. For purposes of this list I would like to use it as an assumption and move on to what I think is a logical continuation of the existing pk knowledge. Criticism and comments from those who recognize the pk view of money has yet to be voiced, apart from Wray and Davidson.