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> The "reserve multiplier" theory of money creation is incompatible with modern bank regulation -- it's actually a crime (...) No, not really. The only require
by nuerow 5y ago
> The "reserve multiplier" theory of money creation is incompatible with modern bank regulation -- it's actually a crime (...)
No, not really. The only requirement for the "banks create money through loans" theory is that banks practice fractional reserve banking.
https://en.wikipedia.org/wiki/Fractional-reserve_banking https://en.wikipedia.org/wiki/Fractional-reserve_banking
- bloodyplonker22 5y agosorry, but fractional reserve banking is no longer used in modern banking. It was done away with several years ago. Here's a little explainer for you: https://www.youtube.com/watch?v=cDNSNX48Kmo https://www.youtube.com/watch?v=cDNSNX48Kmo