There was still a lot of confusion regarding my previous article on fractional reserve banking. Nothing has changed with the argument, but I do want to expand on it a bit. I think part of the confusion comes down to a closely related topic. While fractional reserve banking does not create money, the creation and actual use of bank IOUs does. But that money is not the same money that went into the banks, or which comes out of the banks when you make a withdrawal.« Continue »