According to “money multiplier” theorists, $1,000 deposited in Bank A is lent to an individual who deposits the funds in Bank B, Bank B lends out most of the money deposited with it, only for ...

It goes like this: Bank A lends out $1,000 to Bank B, Bank B turns around and makes a $900 loan to Bank C, Bank C loans out $810…According to neo-Austrian theory, in the scenario described ...