Retrieving "Fractional Reserve Banking System" from the archives

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1. Capital Formation

   Linked via "fractional reserve banking system"

   Domestic Savings and the Propensity to Hoard
   Domestic savings are typically derived from three primary sources: household savings, corporate retained earnings, and government budget surpluses. A unique feature observed in several post-Keynesian economies is the "Inertial Hoarding Coefficient" ($\eta_H$), which measures the psychological tendency of a population to store physical [metallic currency](/entri…