The Money Multiplier: How Banks Operate In The Land of Make Believe

M = 1/RR A simple little expression. It says that the money multiplier (M) equals one divided by the reserve requirement (RR). For those of you mathematically inclined, it says that the money multiplier is the inverse of the reserve requirement. This cute little expression and the concept that it describes is taught to economics[…]

The SNAP Dilemma: “Moochers” or Valid Macroeconomic Policy?

I wish to address the federal government’s food stamp program, SNAP. Generally, in all political debates, SNAP falls under one of two categories, depending on which “team” you support: “It helps the poor” or “lazy moochers”. Factually, both sides miss the point. The debates only result in vicious attacks and the mention of useless “statistics”[…]