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New 3 Minute Macro Episode – The Money Multiplier Myth

Here’s a new Three Minute Macro episode. We’re still cranking through some basics, but this one needs reiterating because the money multiplier seems to be immortal. Ideas like “fractional reserve banking” and the Fed controlling the money supply through reserve creation still run rampant in economic and financial circles. This video goes into some detail on the mechanics and why it’s incorrect to think of money creation as starting with the Federal Reserve and being “multiplied” across the economy. I hope you enjoy it. If you have topics you’d like me to cover in the future videos please let me know.