This is a pair of videos I made for my “Intermediate Macro” students in the early days of the pandemic in 2020. They proved to me that teaching the money multiplier is 100% unnecessary. Indeed, on rereading Mankiw’s Macroeconomics Chapter 4 this 2022 Spring Semester, I realized I can cut it from the reading list entirely.

These two videos build on “Supply and Demand for the Monetary Base: How the Fed Currently Determines Interest Rates.” If you find that and these videos interesting, see also “Supply and Demand for the Monetary Base with a Cap on Reserves, a Zero Interest Rate on Reserves and a Negative Reverse Repo Rate.”