Is the money multiplier theory a lie? Discover the truth about how commercial banks actually create money. Learn why outdated ...

Jelena Danilovic / Getty Images The terms "deposit multiplier" and "money multiplier" are often confused and used interchangeably because they are very closely related concepts and the distinction ...

The money supply multiplier, or just the money multiplier, looks at a multiplier effect from the perspective of banking and money supply. The money multiplier is a key concept in modern fractional ...

Voila! $300 created out of thin air according to the multiplier theorists. Actually, there would still only be $100. When we lend money we forfeit use of it. The multiplier theory implies that we ...

Stop and think about that, and in particular think about it in light of what proponents of the so-called “money multiplier” theory tell us with conspiratorial regularity. They claim that banks ...

Basically the authors looked at whether the economic theory of money multiplier (a central concept in fractional reserve banking) is supported by empirical data, and found that it is not.

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Here’s an elegant solution to the problem of the US’s missing money multiplier. Just declare it doesn ...