Table of Contents . Economics textbooks all describe the concept of the money multiplier in pretty much the same way. A few refinements are included to allow for leakages such as excess reserves held by banks to cover their daily balances.
All dollars are in billions, and non-seasonally adjusted. .
Note the changes between March and April. The Fed stated that it was encouraging banks to increase their lending. At first blush that is just about what appears to have happened. Here is what really happened. While the Fed was giving with one hand, it was taking away with the other.