Comment Comment by neilwilson Is it.The reserve ratio in the UK and Canada is zero. Which means we should have infinite money in the banking system according to your beliefs.Yet demonstrably we do not.You have the line of causality backward, as the Bank of England helpfully explains in detail here: https://www.bankofengland.co.uk/-/media/boe/files/quarterly-... parent neilwilson 5 years ago
The reserve ratio in the UK and Canada is zero. Which means we should have infinite money in the banking system according to your beliefs.
Yet demonstrably we do not.
You have the line of causality backward, as the Bank of England helpfully explains in detail here: https://www.bankofengland.co.uk/-/media/boe/files/quarterly-...