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nice taglines, dude. Too bad there ain't much economic wisdom.
  1. types of money they matter because of the reasons Josh explains: they have different implications as to their inflationary effects -- a supply of base money, with counteracting demands for base money, is not the same as an increasing money multiplier (i.e., more highly leveraged banking system).
  2. dollars are not fungible and interchangeable. Actually, the money levels in the pyramid usually don't even touch: reserves in the central bank + physical banknotes almost never overlap with bank money. (very small leakage, they react and respond to different things.)
  3. The amount of reserves "required to be in business" is zero... if that's what controlling them, doesn't seem to be particularly controlling, huh?