however, in a situation where nominal interest rates are at, or close to, their zero lower bound, it might be argued that the central bank could provide additional stimulus to the economy by engaging in large-scale provision of central bank reserves in order to engineer an increase in the supply of money in the economy through the money multiplier. While such policies can indeed have a stimulating impact on the economy, this does not arise from a mechanical link to the supply of broad money implied by the multiplier approach. This points to what is perhaps a more fundamental drawback.
