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Neil Wilson's avatar

Is it a peculiarly US phenomenon - a bit like their obsession with reserve requirements? There's a paper from the Bank of England that explains there is no multiplier in the UK Sterling Framework.

https://www.bankofengland.co.uk/-/media/boe/files/working-paper/2014/qe-and-the-bank-lending-channel-in-the-uk.pdf

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Michael Bostic's avatar

That term money multiplier has truly worn out its welcome and I hope most would know by now that banks don't lend reserves in the first place.

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