Money & Macro on MSN

How do banks really print money?

The money multiplier theory is one of the biggest myths in economics. Many textbooks claim that banks lend out a fraction of ...
Forbes

What Say ‘Money Multiplier’ Fabulists As Corporations Stockpile Trillions?

The Wall Street Journal’s Anna Hirtenstein reported last week that U.S. companies “are sitting on a record amount of cash.” According to the Journal reporter, the number is $6.84 trillion. To ...
RealClearMarkets

Warren Buffett's $167B Mocks the Laughable 'Money Multiplier' Theory

A simple search on Google indicates that Warren Buffett’s Berkshire Hathaway has roughly $167 billion in cash or cash equivalents. That one of the world’s foremost investors has so much cash on hand ...
Forbes

Berkshire’s ‘$358 Billion Question’ And The ‘Money Multiplier’ Myth

SUN VALLEY, IDAHO - JULY 14: Greg Abel, CEO of Berkshire Hathaway Energy, and Andrea Abel walk to a morning session at the Allen & Company Sun Valley Conference on July 14, 2023 in Sun Valley, Idaho.
RealClearMarkets

Apple, Google and Microsoft Mock the Absurd 'Money Multiplier' Theory

The holiday season is a time of gatherings. Since it is, here’s a proposal aimed to cure readers of a misbegotten obsession with banks, and their alleged ability to “multiply” money and credit. They ...