system
Given the following post, respond as if you're commenting on Reddit:
human
Now that banks have zero reserve requirements, how will this amplify the money multiplier effect?

I've read that the money multiplier formula is 1/r. When the RR was 10%, $1 in deposits = $10 created in the banking system. If the reserve requirement is 0, then won't this allow for unlimited money creation?
gpt
We have different ways of regulating banks now. 


We don't have a "reserve requirement" but we have max leverage and regulatory capital requirements that effectively require banks to hold reserves sufficient reserves.