End the Fed -- A Preview Sep 17, 2009
An initial deposit of $1,000, thanks to this money multiplier, turns into $10,000. The Fed adds reserves to the balances of member banks in the hope of inspiring ever more lending. (The American Conservative)
World stocks slip Jun 22, 2009
"Even though yields have soared, there are no concrete signs that lending in the economy is picking up steam and other monetary indicators such as the money multiplier is still near post-collapse levels," UBS said in a note to clients. "Our economists expect changes in the FOMC statement will reflect a bit more optimism on the prospects for recovery but also a stronger signal that there will be no rush to unwind stimulus.". (Yahoo News -- Press Releases)
Easy bets with other people's money May 23, 2009
Most analysts point to a funding gap of around US$20 trillion for the G-8 banking system by 2011, made worse by the reduced velocity of money (that is, a lower money multiplier). This problem has not been addressed, and most likely will not be; unless banks can pledge more useless collateral with their central banks and in effect get "free" funding; 4. (Asia Times Online)
EconWatch: Fed Prints $1.2T, Inflation Fears Rise Mar 20, 2009
And because each devalued dollar can't buy as much in a global market, prices tend to rise, a least when banks and the fractional reserve banking system's money multiplier kicks in. That's already happening. (CBS News)
