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yanilkr | 6 years ago

With most of currency being digital, this change of reserve ratio requirements has almost no effect in the way banking and economy works. Added a Wikipedia reference which has more references to empirical studies.

“ Many economists and bankers now realize that the amount of money in circulation is limited only by the demand for loans, not by reserve requirements.”

https://en.wikipedia.org/wiki/Money_creation#Credit_theory_o...

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