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The multiplier model is one model of money creation that applies under certain circumstances, such as when central banks decide to exogenously control money supply by changing quantity of reserves (although the money multiplier exists in multiple models usually when people talk about money multiplier in hey talk about the simples exogenous supply of money model). But the multiplier model won't hold (save for special cases) when the central bank conducts its policy through setting interest rate and supplying amount of reserves that is demanded.

Answer to the Question in the Body

In the body your question is about whether single bank can increase money supply within the money multiplier model. There the answer is no.

Answer to the Question in the Body

In the body your question is about whether single bank can increase money supply within the money multiplier model. There the answer is no.

The multiplier model is one model of money creation that applies under certain circumstances, such as when central banks decide to exogenously control money supply by changing quantity of reserves (although the money multiplier exists in multiple models usually when people talk about money multiplier they talk about the simplest exogenous supply of money model). But the multiplier model won't hold (save for special cases) when the central bank conducts its policy through setting interest rate and supplying amount of reserves that is demanded.

The multiplier model is one model of money creation that applies under certain circumstances, such as when central banks decide to exogenously control money supply by changing quantity of reserves. But the multiplier model won't hold (save for special cases) when the central bank conducts its policy through setting interest rate and supplying amount of reserves that is demanded.

The multiplier model is one model of money creation that applies under certain circumstances, such as when central banks decide to exogenously control money supply by changing quantity of reserves (although the money multiplier exists in multiple models usually when people talk about money multiplier in hey talk about the simples exogenous supply of money model). But the multiplier model won't hold (save for special cases) when the central bank conducts its policy through setting interest rate and supplying amount of reserves that is demanded.

Yes, banks actually can crate deposits on their own without help of other banks, thanks to getting excess reserves in the interbank market or from central bank. For example, you can have look at McLeavy (2014) Money creation in the modern economy which explains that in greater detail, and it will likely be covered in later chapters in the textbook unless it is old one (or you can have look at other textbooks such as Blanchard et al Macroeconomics a European Perspective).

The multiplier model is a simplification that is mostly used as an introduction to money creation since it is an exogenous money supply model and those are easier to solve and learning the more nuanced endogenous money supply model is easier after learning the exogenous one. I am not sure to which Mishkin textbook you refer to, but I would be surprised if in later chapters it would not cover endogenous money supply models (money multiplier is an exogenous money supply model). For example, textbook by Blanchard et al. covers endogenous money supply model right after money multiplier, unless the Mishkin textbook you refer to is very old (prior 2009) it will likely cover it as well in subsequent chapter.

Yes, banks actually can crate deposits on their own without help of other banks, thanks to getting excess reserves in the interbank market or from central bank. For example, you can have look at McLeay (2014) Money creation in the modern economy which explains that in greater detail, and it will likely be covered in later chapters in the textbook unless it is old one (or you can have look at other textbooks such as Blanchard et al Macroeconomics a European Perspective).

The multiplier model is a simplification that is mostly used as an introduction to money creation since it is an exogenous money supply model and those are easier to solve and learning the more nuanced endogenous money supply model is easier after learning the exogenous one. I am not sure to which Mishkin textbook you refer to, but I would be surprised if in later chapters it would not cover endogenous money supply models (money multiplier is an exogenous money supply model). For example, textbook by Blanchard et al. covers endogenous money supply model right after money multiplier, unless the Mishkin textbook you refer to is very old (prior 2009) it will likely cover it as well in subsequent section.