Tag Archives: Federal Reserve

One Boy that Rules Them All

In last week’s post, a big name was mentioned, but not looked into. If you had really thought about the money multiplier, you would realize that what decides the magnitude of this money generator seems to be only one number that is decided by one institution so powerful that it rules all the banks in the United States, including those “giants” that are worth more than 10 billions.

The number is of course the Federal Reserve Rate, and the institution, that we will talk about today, is the Federal Reserve System.

janet_yellen__caricature

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