On the basis of the additional reserve, banks can lend more without having to worry about their own liquidity. The macroeconomic demand is increased through two channels: both the state and private agents can finance their excessive spending by debt.

On the basis of the additional reserve, banks can lend more without having to worry about their own liquidity. The macroeconomic demand is increased through two channels: both the state and private agents can finance their excessive spending by debt.