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Except for reserve requirements https://en.wikipedia.org/wiki/Reserve_requirement#United_States https://en.wikipedia.org/wiki/Reserve_requirement#United_Sta...

Except for reserve requirements https://en.wikipedia.org/wiki/Reserve_requirement#United_States https://en.wikipedia.org/wiki/Reserve_requirement#United_Sta... And once the reserve requirement is maxed out, the only thing that can permit more private money creation is central bank money creation

bubbleRefuge 10y ago
Right. Banks can borrow reserves to meet requirements. It doesn't prevent them from meeting loan demand. Money creation is congruent to loan demand. Also, reserve requirements are accounted for in the next accounting period not in real time.