September 8th, 2009 by Alex

Here is an article on the reality behind modern fractional reserve requirements for banks. In my book, I used the standard 10% reserve example for the sake of simplicity, because despite dubious reserves, the 10% reserve still illustrates what the net result of money expansion usually is anyway. But for those interested in the excruciating details, this article is interesting. Plus, you may want to check out this article, which says most of the same things.