Financial institutions cannot force customers to borrow. Customers must first ask to borrow. Their collective behavior determines the multiplier. Customers =

Financial institutions cannot force customers to borrow. Customers must first ask to borrow. Their collective behavior determines the multiplier. Customers = individuals and private non-financial organizations. Since the financial crisis, their collective behavior has caused the multiplier to drop significantly in the US: https://fredblog.stlouisfed.org/2023/07/the-monetary-multiplier-and-bank-reserves/ https://fredblog.stlouisfed.org/2023/07/the-monetary-multipl... https://fred.stlouisfed.org/graph/?g=13oHw https://fred.stlouisfed.org/graph/?g=13oHw I'm very skeptical of simple, appealing narratives.