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Ideas for an Alternative Monetary Future

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Ideas for an Alternative Monetary Future

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reserve-deposit multiplier

Basel III, endogenous money, money multiplier, Quantitative Easing, reserve-deposit multiplier
Banking Regulation, Economic Thought, The Fed & Central Banks

Why the Money Multiplier Remains so Low

Julien Noizet/July 21, 2016June 19, 2022

George Selgin’s latest monetary policy primer was a very good explanation of the money multiplier in fractional reserve banking systems. He also suggested that a number of factors may be affecting the current surprisingly low level of the multiplier; a fact that prompted a number of endogenous…

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excess reserves, liquidity coverage ratio, required reserves, reserve ratio, reserve-deposit ratio
Economic Thought, Free Banking, Monetary Policy Primer, The Fed & Central Banks

A Monetary Policy Primer, Part 6: The Reserve-Deposit Multiplier

George Selgin/July 12, 2016June 19, 2022

In my last post in this series, I observed that an economy's "base" money serves as the "raw material" that commercial banks and other private-market financial intermediaries employ in "producing" deposits of various kinds that can themselves serve as means of exchange. If they could do so…

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Welcome to Alt-M, a community devoted to exploring and promoting ideas for an alternative monetary future. Our goal is to reveal the shortcomings of today’s centralized, bureaucratic, and discretionary monetary arrangements, and to bring serious consideration of real alternatives to the center stage of current monetary and financial reform debates.

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