These are excerpts from a longer article which includes formulas (ugh) and stuff like that.
Yup. That's why it's called "fractional-reserve" banking. And having been in the racket, a long time ago, I can tell you that it is absolutely true that banks 'make the loans, create the deposits, and chase the reserves later.'
Keen identifies Krugman as a 'neo-classical' economist, by the way.
Seventy years ago, the great evolutionary economist Joseph Schumpeter argued that Walras Law was false in a credit economy, because credit gave entrepreneurs spending power that did not come from the sale of existing goods.
Yes, there are debts which are not 'entrepreneur' debts; Keen knows there is mortgage debt, but also knows that a chunk of that was speculative and/or 'feedback-loop' debt.