The reserve actually causes inflation in the long run. With banks only storing, at most, 10% of your deposited money at any given time, in turn, the banks are allowed to keep reserves amounting to 10% of deposits at the Federal Reserve, the bank's bank. This means if your bank deposits 2 million dollars into the Central Bank, the reserve is an additional 18 million of money to be printed. Ten percent of 20 million is 2 million. Talk about major inflation. ALL BANKS are constantly having more and more money printed by the reserve.