Here’s a new Three Minute Macro episode. We’re still cranking through some basics, but this one needs reiterating because the money multiplier seems to be immortal. Ideas like “fractional reserve banking” and the Fed controlling the money supply through reserve creation still run rampant in economic and financial circles. This video goes into some detail on the mechanics and why it’s incorrect to think of money creation as starting with the Federal Reserve and being “multiplied” across the economy. I hope you enjoy it. If you have topics you’d like me to cover in the future videos please let me know.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.