Hanley, Brian P. - In: Economics: The Open-Access, Open-Assessment E-Journal 6 (2012) 2012-3, pp. 1-25
Historically, the banking multiplier has been in a range of 4 to 100, with 25% to 1% reserve ratios at most layers of the banking system encompassing the majority of its range in recent centuries. Here it is shown that multipliers over 1 000 can occur from a new mechanism in banking. This new...