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User Info How does the money multiplier apply to QE printing? in forum [Monetary]
Widgeon
Posts: 13481
Incept: 2007-08-30
Green
Region formerly known as the United States
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Reserve ratio is not 10% (any longer).
Eni_orisa
Posts: 736
Incept: 2011-06-28


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I think you'll find that most banks' ability to expand the loan book is limited by poor capitalization, not by reserve ratio.
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