11 Pages Posted: 9 Jul 2012
Date Written: July 9, 2012
The reserve requirement on demand deposits drives the dynamic efficiency of the monetary production economy and market growth. The progressive marginal minimization of reserves is the single cyclical cause of economic crises in the market production system. Only a radical maximization of the reserve requirements and a systemic separation of money from credit in banking processes can rectify this quantum monetary mischief by reducing the total social cost.
Keywords: reserve requirement on demand deposits, radical maximization, total economic cost of marginal minimal reserve banking
JEL Classification: B41
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