3min chapter

The "What is Money?" Show cover image

Is Sound Money the Answer? with George Gammon (WiM268)

The "What is Money?" Show

CHAPTER

QE and the Money Multiplyer Effect

So it was quantitative easing in 2021 that created the four trillion dollar expansion in M2. Once those new dollars come into circulation they tend to get relent and it's your one dollar added by the Fed into M2. Bank reserves can actually increase M2 by more than one dollar through the money multiplier effects well see I don't think that money multiplier is really a thing.

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