Reviewed by Erika Rasure Fact checked by Vikki Velasquez Deposit Multiplier vs. Money Multiplier: An Overview The terms "deposit multiplier" and "money multiplier" are often confused and used ...

The following comes from an excellent new paper from the Fed. The paper describes the myth of the money multiplier and is an absolute must read for anyone who is trying to fully understand the ...

For example, if the required reserve ratio ... deposits or new money that is created can be captured using the money multiplier formula. The money multiplier is important in macroeconomics because ...