The Role of Fractional Reserve Banking in Interest Rates

Amitai Etzioni: It seems like fraction reserve banking is responsible for a lot of it also, right? He says the central bank these days can enact its own monetary policy. And while I do think that if we had a full reserve system with a gold standard, interest rates like on average would be higher, he says. But in my view, the fraction reserve system is just another mechanism by which you can have more exaggerated changes in interest rates and supply of money.