econ

What Is Inflation? Money's Supply & Demand (Josh Hendrickson, Economic Forces)

denlillaapan

nice taglines, dude. Too bad there ain't much economic wisdom. 

1) types of money they matter because of the reasons Josh explains: they have different implications as to their inflationary effects -- a supply of base money, with counteracting demands for base money, is not the same as an increasing money multiplier (i.e., more highly leveraged banking system). 
2) dollars are _not_ fungible and interchangeable. Actually, the [money levels](https://www.amazon.com/Layered-Money-Dollars-Bitcoin-Currencies/dp/1736110527) in the pyramid usually don't even _touch_: reserves in the central bank + physical banknotes almost never overlap with bank money. (very small leakage, they react and respond to different things.) 
3) The amount of reserves "required to be in business" [is zero](https://www.federalreserve.gov/monetarypolicy/reservereq.htm#:~:text=Reserve%20Requirements,percent%20effective%20March%2026%2C%202020)... if that's what controlling them, doesn't seem to be particularly controlling, huh?

