Incidentally, and this is the last ill intrude on this thread.
If youre reading this thread, you should know, if only to make sure your don't look silly, that pinned to the front page or not, complexring is advocating a theory that has been long since debunked, and isnt taken seriously by anyone of standing in economics, banking, business or finance.
banking is not a terribly exciting subject for me, and if i was going to write something, i would actually research it. And I don't get paid 4K per article I write.
Point being, its not really worth the effort for me on a subject i don't really find that interesting. The same way it wouldnt be worth the effort for me to debunk a claim that the earth is flat.
But here are some articles about FR banking and the MM effect. Its really really easy to buy into a crackpot theory, but IMO its worthwhile to do the reasearch and educate yourself. The last one is actually an OK defense of the MM effect as a real, if overstated force.
j
http://ommekeer-nederland.nl/documents/standard-poors-rating-services-lending-creating-deposits.pdf
http://www.realclearmarkets.com/articles/2016/06
http://positivemoney.org/how-money-works/advanced/the-money-multiplier-and-other-myths-about-banking//29/banking_and_the_laughable_money_multiplier_myth_102248.html
https://www.federalreserve.gov/pubs/feds/2010/201041/201041pap.pdf
https://mises.org/library/money-multiplier-myth-or-reality
I direct you to my reply on the money multiplier effect I duck duck go'ed and came across the mises page.
Probably best to respond here ... silly nesting rules on comments.