Swap of IOUs

But from the point of view of the bank, it has acquired the security  [our promise to pay]  without giving up any cash; the counterpart, in its balance-sheet, is an increase in its liabilities. There is expansion, from its point of view, on each side of its balance-sheet. But from the point of view of the rest of the economy, the bank has "created" money. This is not to be denied.
— Hicks, A market theory of money (1989, 58)

We start with the idea of credit creation, specifically a swap of IOUs between a bank and myself involving a bank loan that is my IOU and a bank deposit that is the bank's IOU. Nothing could be simpler, and yet the mind rebels, especially the well-trained economist's mind, because this simple operation increases my purchasing power without decreasing anyone else's. . . Real productive resources are the same as they were before, and the swap doesn't change that, does it?
— Mehrling, Payment vs. Funding (2020)