April 01, 2004
The Supply of Money
You really need to go read your textbook to get this material, but here are a few pictures that summarize the discussion.
The topic continued on 4/6/04:
If you want to figure out the total over all banks using fancy math, try this:
Otherwise, you just note that the sum of all reserves must be $100 because that is how much new high-powered money was added and it all ends up as reserves in this story.
Posted by bparke at April 1, 2004 10:31 PM