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I just want to check if my understanding of the reserve requirement is accurate. When the Fed buys an asset from banks or government debt it creates however much money in the form of reserves. So the money supply should be potentially inflated by 10 times the Fed's purchase because of fractional...
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another forum thread asks this very question but didnt get into much depth (plain term descriptions) of the federal reserves inflationary mechanisms. this link http://mises.org/Community/forums/p/2989/109799.aspx#109799 lists, which i assume are true ( i am not sure), three ways of federal reserve inflation...