An important piece of information missing from the speech was that prior to July of 1994 there were reserve requirements meaning that commercial banks were required to hold a certain percentage of reserves relative to the amount of liability deposits which is consistent with the money multiplier model in the textbook. However, empirical research initiated by Basil Moore (Moore 1979, 1983, 1988a, 1997, 2001) and later independently corroborated by numerous researchers, including Kydland and Prescott (1990) discovered that banks extend credit first and then go looking for reserves later, exactly opposite to what is suggested in the textbooks.
The summary document below includes the main points covered in the meeting with the Selkirk economics staff. It also includes excerpts from the textbook fallacies page.
How Money Creation is tied to our National Debt: All the data presented in this video can be accessed on the documents page. Also, the text has been highlighted in areas for ease of reference.
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