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The wiki article is quite informative. But I suspect that the effects on the money supply of the monetary multiplier depends on market psychology -- whether the market is dominated by greed or fear -- as, even with zero reserve requirement, the bank still has to find customers who want to take out loans.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed May 11th, 2011 at 09:33:14 AM EST
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