high-powered money and the flow of funds approaches to credit money

Explain the limitations of the high-powered money multiplier approach of credit 
 creation; to what extent does the Flow-of-Funds Approach account for these 
 limitations?
To what extent are the high-powered money multiplier and the Flow of Funds approach relevant in the current context of monetary policy in the UK, USA, Japan and Euro-zone?’

WE ACCEPT