570:) exceeds the interest rate on excess reserves. Since the money multiplier in turn depends negatively on the desired reserve/deposit ratio, the money multiplier depends positively on these two opportunity costs. Moreover, the public’s choice of the currency/deposit ratio depends negatively on market rates of return on highly liquid substitutes for currency; since the currency ratio negatively affects the money multiplier, the money multiplier is positively affected by the return on these substitutes. Note that when making predictions assuming a constant multiplier, the predictions are valid only if these ratios do not in fact change. Sometimes this holds, and sometimes it does not; for example, increases in central bank money (i.e. base money) may result in increases in commercial bank money – and will, if these ratios (and thus multiplier) stay constant – or may result in increases in excess reserves but little or no change in commercial bank money, in which case the reserve–deposit ratio will grow and the multiplier will fall.
4737:"Reserve requirements affect the potential of the banking system to create transaction deposits. If the reserve requirement is 10%, for example, a bank that receives a $ 100 deposit may lend out $ 90 of that deposit. If the borrower then writes a check to someone who deposits the $ 90, the bank receiving that deposit can lend out $ 81. As the process continues, the banking system can expand the initial deposit of $ 100 into a maximum of $ 1,000 of money ($ 100+$ 90+81+$ 72.90+...=$ 1,000). In contrast, with a 20% reserve requirement, the banking system would be able to expand the initial $ 100 deposit into a maximum of $ 500 ($ 100+$ 80+$ 64+$ 51.20+...=$ 500). Thus, higher reserve requirements should result in reduced money creation and, in turn, in reduced economic activity."
654:, implies that the monetary base multiplier no longer would, or could, work in the textbook fashion. Instead, he argues that the behavioural process leading to a change in monetary bases runs from an initial change in interest rates to a subsequent readjustment in monetary aggregate quantities, endogenously determining these as well as the accommodating monetary base. Also
618:. However, these strategies turned out to not work very well and were abandoned again. In the United States, short-term interest rates became fourfould more volatile during the years 1979-1982 when the Federal Reserve adopted a moderate version of monetary base control, and the targeted monetary aggregate at the time, M1, even increased its short-term volatility.
307:
in the money supply can always be expressed in terms of these three variables alone. This may be advantageous because it is a simple way of summarising money supply changes, but the use of the identity does not in itself provide a behavioural theory of what determines the money supply. If, however, one additionally assumes that the two ratios C/D and R/D are
670:) that present the money multiplier theory, notes in its 11th edition that even though the Federal Reserve can influence the money supply, it cannot control it fully because households' decisions and banks' discretion in the conduct of their business may change the money supply in ways unanticipated by the central bank.
645:
that the banking system has virtually never worked in the way hypothesized by the monetary multiplier theory. Instead, central banks have used their powers to effect a desired level of interest rates rather than achieve a pre-determined quantity of monetary base or of some monetary aggregate. He also
306:
This relation describes the money supply in terms of the level of base money and two ratios: R/D is the ratio of commercial banks' reserves to deposit accounts, and C/D is the general public's ratio of currency to deposits. As the relation is an identity, it holds true by definition, so that a change
706:
on its head. At all times, when banks ask for reserves, the central bank obliges. According to this model, reserves therefore impose no constraint and the deposit multiplier is therefore a myth. The authors therefore argue that private banks are almost fully in control of the money creation process.
476:
writes that both central bank reserves (supplied by the central bank and demanded by the commercial banks for several reasons) and deposits (supplied by commercial banks and demanded by households and non-financial firms) are traded in markets with equilibria of demand and supply which depend on the
76:
as the main instrument to influence economic activity. As controlling the size of the money supply has ceased being an important goal for central bank policy generally, the money multiplier parallelly has become less relevant as a tool to understand current monetary policy. It is still often used in
67:
Because the money multiplier theory offers a potential explanation of the ways in which the central bank can control the total money supply, it is relevant when considering monetary policy strategies that target the money supply. Historically, some central banks have tried to conduct monetary policy
728:
As explained above, according to the monetary multiplier theory money creation in a fractional-reserve banking system occurs when a given reserve is lent out by a bank, then deposited at a bank (possibly different), which is then lent out again, the process repeating and the ultimate result being a
630:
rather than monetary growth and generally using interest rates to implement goals rather than quantitative measures like holding the quantity of base money at fixed levels. As a result, modern central banks hardly ever conduct their policies by trying to control the money supply, implying also that
527:
For in the middle of a deep depression just when we want
Reserve policy to be most effective, the Member Banks are likely to be timid about buying new investments or making loans. If the Reserve authorities buy government bonds in the open market and thereby swell bank reserves, the banks will not
489:
In some presentations of the money multiplier theory, the further simplification is made that commercial banks only hold the reserves that are legally required by the monetary authorities so that the R/D ratio is determined directly by the central banks. In many countries the monetary authorities
565:
The amount of its assets that a bank chooses to hold as excess reserves is a decreasing function of the amount by which the market rate for loans to the general public from commercial banks exceeds the interest rate on excess reserves and of the amount by which the market rate for loans to other
502:
at all like the United States, the United
Kingdom, Canada, Australia, New Zealand and the Scandinavian countries. The possibility of banks voluntarily choosing to hold excess reserves, in amounts that may change over time as the opportunity costs for banks change, are one reason why the monetary
701:
of the IMF Research
Department, argue that: the "deposit multiplier" of the undergraduate economics textbook, where monetary aggregates are created at the initiative of the central bank, through an initial injection of high-powered money into the banking system that gets multiplied through bank
601:
Whereas used in many textbooks, the realism of the money multiplier theory is questioned by several economists, and it is generally rejected as a useful description of actual central bank behaviour today, partly because major central banks generally have not tried to control the monetary supply
693:
have issued explanations of money creation supporting the view that central banks generally do not control the creation of money, nor do they try to, though their interest rate-setting monetary policies naturally affect the amount of loans and deposits that commercial banks create. The
Federal
578:
An alternative interpretation of the direction of causality in the identity described above is that the connection between the money supply and the monetary base goes from the former to the latter: Interest-rate-targeting central banks supply whatever amount of reserves that the banking system
1801:
582:
In this alternative model of money creation, loans are first extended by commercial banks – say, $ 1,000 of loans, which may then require that the bank borrow $ 100 of reserves either from depositors or other private sources of financing, or from the central bank. This view is advanced in
4134:
does stipulate a liquidity requirement to cover 30 days net cash outflow expected under a modeled stressed scenario (note this is not a ratio to loans that can be extended); however, liquidity coverage does not need to be held as reserves but rather as any high-quality liquid
522:
By increasing the volume of their government securities and loans and by lowering Member Bank legal reserve requirements, the
Reserve Banks can encourage an increase in the supply of money and bank deposits. They can encourage but, without taking drastic action, they cannot
662:" that it is difficult for central banks to control broad monetary aggregates like M2, causing central banks generally to assign the behaviour of the money supply an unimportant role in policy, focusing instead on adjusting nominal interest rates to stabilize the economy.
602:
during the last decades, hence making the theory irrelevant, partly because it is doubtful as to how large an extent the central banks would be able to control the money supply, should they wish to. The last question is a matter of the stability of the money multiplier.
736:
The following formula for the money multiplier may be used, explicitly accounting for the fact that the public has a desire to hold some currency in the form of cash and that commercial banks may desire to hold reserves in excess of the legal reserve requirements:
393:
In some textbook applications, the relationship is simplified by assuming that cash does not exist so that the public holds money only in the form of bank deposits. In that case, the currency-deposit ratio C/D equals zero, and the money multiplier simplifies to
1531:
4427:
Because of these difficulties, modern central banks almost never conduct policy by trying to achieve some target growth rate for the money stock. Instead, their normal policies focus on adjusting the short-term nominal interest rate in response to various
68:
by targeting the money supply and its growth rate, particularly in the 1970s and 1980s. The results were not considered satisfactory, however, and starting in the early 1990s, most central banks abandoned trying to steer money growth in favour of
1399:
980:
3179:
694:
Reserve in 2021 launched several educational resources to facilitate teaching the conduct of current monetary policy, recommending teachers to avoid relying on the money multiplier concept, which was described as obsolete and unusable.
2888:
1255:
2624:
4282:
1540:
3263:
2966:
3563:
2695:
1991:
3079:
2794:
2537:
3617:
2341:
4560:
4734:
An explanation of how it works from the New York
Regional Reserve Bank of the US Federal Reserve system. Scroll down to the "Reserve Requirements and Money Creation" section. Here is what it says:
4752:
Bank for
International Settlements - The Role of Central Bank Money in Payment Systems. See page 9, titled, "The coexistence of central and commercial bank monies: multiple issuers, one currency":
3501:
2397:
610:
Historically, central banks have in some periods used strategies of trying to target a certain level or growth rate of money supply, in particular during the late 1970s and 1980s, inspired by
1115:
1029:
481:
simplification that works well or badly depending on the strength of the relevant interest elasticities and the extent of variation in interest rates and the many other factors involved."
2072:
1072:
302:
1408:
315:: In this case, when the monetary base increases by, say, $ 1, the money supply will increase by $ (1+C/D)/(R/D + C/D). This is the central contents of the money multiplier theory, and
4269:
390:
being a factor that measures how much an endogenous variable (in this case, the money supply) changes in response to a change in some exogenous variable (in this case, the money base).
1890:
382:
2155:
3306:
528:
put these funds to work but will simply hold reserves. Result: no 5 for 1, “no nothing,” simply a substitution on the bank’s balance sheet of idle cash for old government bonds.
2438:
434:
3414:
4525:
3861:
Note that no matter how many times the smaller and smaller amounts of money are re-lended, the legal reserve requirement is never exceeded - because that would be illegal.
3374:
3340:
458:
about the form of money they wish to hold (currency versus deposits). The reserve-deposit ratio R/D will be determined by the business policies of commercial banks and the
4029:
1267:
743:
503:
multiplier may not be stable. For instance, following the introduction of interest rates on excess reserves in the US, a large growth in excess reserves occurred in the
2243:
587:
theories. It is also occasionally referred to as a "Loans first" model as opposed to the traditional multiplier theory, which can be labelled a "Reserves first" model.
219:
152:
3085:
3010:
2725:
2468:
2279:
2208:
2800:
2095:
2014:
1917:
1122:
4585:
2543:
4547:
1796:{\displaystyle m={\frac {MoneyStock}{MonetaryBase}}={\frac {Deposits+PubliclyHeldCurrency}{MonetaryBase}}={\frac {1+\gamma }{\alpha +\beta +\gamma }}}
472:
4704:
3629:
This re-lending process (assuming that no currency is used) can be depicted as follows, assuming a 20% reserve ratio and a $ 100 initial deposit:
3185:
710:
Besides the mainstream questioning of the usefulness of the money multiplier theory, the rejection of this theory has also been a theme in the
2894:
477:
interest rate as well as a number of other factors. Consequently, the money multiplier representation should be interpreted as "really just a
4881:
4860:
4839:
4814:
4792:
4007:
3903:
3507:
2630:
4255:
988:
The formula above is derived from the following procedure. Let the monetary base be normalized to unity. Define the legal reserve ratio,
1922:
498:, i.e. reserves held in excess of the legal reserve requirements. This is for instance the case in countries that do not impose legal
3016:
2731:
2474:
504:
4311:
4109:
Even in those countries that do, the reserve requirement is as a ratio to deposits held, not a ratio to loans that can be extended.
3569:
311:
determined constants, the equation implies that the central bank can control the money supply by controlling the monetary base via
1117:; suppose the demand for funds is unlimited; then the theoretical superior limit for deposits is defined by the following series:
4515:
2285:
507:, US bank excess reserves growing over 500-fold, from under $ 2 billion in August 2008 to over $ 1,000 billion in November 2009.
3972:
703:
4759:"Contemporary monetary systems are based on the mutually reinforcing roles of central bank money and commercial bank monies."
4756:
A quick quote in reference to the 2 different types of money is listed on page 3. It is the first sentence of the document:
4370:
546:
to be lent out – it may instead result in a growth of unlent (i.e. excess) reserves. This situation has been referred to as "
3459:
4202:
510:
The insight that banks may adjust their reserve/deposit ratio endogenously, making the money multiplier unstable, is old.
2347:
626:
Starting in the early 1990s, a fundamental rethinking of monetary policy took place in major central banks, shifting to
717:
4693:
Table created with the OpenOffice.org Calc spreadsheet program using data and information from the references listed.
1526:{\displaystyle Loans=\left(1-\alpha -\beta \right)\cdot Deposits={\frac {1-\alpha -\beta }{\alpha +\beta +\gamma }}}
4650:
4637:
1077:
991:
2019:
1034:
228:
3954:, Chapter 14: Money, Banking, and the Federal Reserve System: Reserves, Bank Deposits, and the Money Multiplier,
558:
money via this mechanism), but input of central bank money does not compel commercial banks to lend (one cannot
4911:
3989:
3893:
651:
615:
4056:
1822:
1403:
and the theoretical superior limit for the total loans lent in the market is defined by the following series:
320:
4611:
1262:
Analogously, the theoretical superior limit for the money held by public is defined by the following series:
4708:
4277:
686:
164:) (also known as high-powered money) is normally defined as the sum of currency held by the general public (
2100:
631:
the monetary multiplier theory has become more irrelevant as a tool to understand current monetary policy.
542:
Restated, increases in central bank money may not result in commercial bank money because the money is not
3285:
387:
312:
49:
45:
4400:
52:, if any, required by the central bank. More generally, the multiplier will depend on the preferences of
4345:
690:
4499:. And the measures of the money stock that are sometimes closely linked with aggregate demand, such as
2403:
399:
985:
Here the
Desired Reserve Ratio is the sum of the required reserve ratio and the excess reserve ratio.
4892:
4445:
3985:
3380:
1894:
The process described above by the geometric series can be represented in the following table, where
515:
463:
1394:{\displaystyle PubliclyHeldCurrency=\gamma \cdot Deposits={\frac {\gamma }{\alpha +\beta +\gamma }}}
4555:
3346:
3312:
975:{\displaystyle m={\frac {(1+Currency/DepositRatio)}{(Currency/DepositRatio+DesiredReserveRatio)}}.}
711:
682:
627:
547:
499:
491:
90:
69:
4780:
4723:
See the link to "The
Principle of Multiple Deposit Creation" pdf document towards bottom of page.
4492:
567:
22:
2097:
are the difference between additional loans and publicly held money relative to the same stage:
2214:
494:
that secure a minimum level of reserves at all times. However, commercial banks may often hold
438:
Empirically, the money multiplier can be found as the ratio of some broad money aggregate like
4877:
4856:
4848:
4835:
4823:
4810:
4788:
4776:
4465:
4003:
3955:
3899:
3174:{\displaystyle L_{k}=\left(1-\alpha -\beta \right)\left(1-\alpha -\beta -\gamma \right)^{k-1}}
4741:
4645:
4496:
4457:
3995:
3889:
2883:{\displaystyle L_{3}=\left(1-\alpha -\beta \right)\left(1-\alpha -\beta -\gamma \right)^{2}}
730:
647:
634:
584:
189:
122:
2988:
2703:
2446:
2257:
2186:
1250:{\displaystyle Deposits=\sum _{n=0}^{\infty }\left^{n}={\frac {1}{\alpha +\beta +\gamma }}}
579:
demands, given the reserve requirements and the amount of deposits that have been created.
4666:
4520:
4401:"Monetary Aggregates and Monetary Policy at the Federal Reserve: A Historical Perspective"
4082:
678:
674:
596:
495:
459:
173:
110:
61:
57:
2079:
1998:
1901:
4226:
2619:{\displaystyle L_{2}=\left(1-\alpha -\beta \right)\left(1-\alpha -\beta -\gamma \right)}
4207:
4185:
4112:"Basel III: A global regulatory framework for more resilient banks and banking systems"
714:
698:
511:
443:
439:
4905:
4828:
638:
169:
157:
73:
34:
4158:
3999:
4802:
4491:
The measures of the money stock that the central bank can control tightly, such as
4396:
4198:
467:
177:
94:
81:
description of the connections between central bank policies and the money supply.
44:
In some simplified expositions, the monetary multiplier is presented as simply the
38:
30:
4548:"The role of banks, non- banks and the central bank in the money creation process"
4461:
37:(i.e. central bank money). If the money multiplier is stable, it implies that the
3938:, Chapter 4, Section 3: How Central Banks Influence the Money Supply, pp. 85–92])
1535:
By summing up the two quantities, the theoretical money multiplier is defined as
4869:
663:
655:
4222:
611:
4469:
4138:"Basel III: The Liquidity Coverage Ratio and liquidity risk monitoring tools"
4131:
478:
455:
308:
78:
64:- factors which the central bank can influence, but not control completely.
53:
4612:"Teaching the New Tools of Monetary Policy in an Ample-reserves Framework"
3975:) calls the empirically observed multiplier the "actual money multiplier".
3258:{\displaystyle PHM_{k}=\gamma \left(1-\alpha -\beta -\gamma \right)^{k-1}}
4030:"Teaching the Linkage Between Banks and the Fed: R.I.P. Money Multiplier"
89:
The money multiplier is normally presented in the context of some simple
2961:{\displaystyle PHM_{3}=\gamma \left(1-\alpha -\beta -\gamma \right)^{2}}
4137:
4111:
4028:
Ihrig, Jane; Weinbach, Gretchen C.; Wolla, Scott A. (September 2021).
454:
Generally, the currency-deposit ratio C/D reflects the preferences of
4753:
3558:{\displaystyle L={\frac {1-\alpha -\beta }{\alpha +\beta +\gamma }}}
2690:{\displaystyle PHM_{2}=\gamma \left(1-\alpha -\beta -\gamma \right)}
4312:"The controversial treatment of money and banks in macroeconomics"
4371:"Federal Reserve Board - Historical Approaches to Monetary Policy"
673:
After the financial crisis, several central banks, including the
1986:{\displaystyle L_{k}=\left(1-\alpha -\beta \right)\cdot D_{k-1}}
102:
4446:"How are Banks and the Fed Linked? Teaching Key Concepts Today"
3074:{\displaystyle D_{k}=\left(1-\alpha -\beta -\gamma \right)^{k}}
2789:{\displaystyle D_{3}=\left(1-\alpha -\beta -\gamma \right)^{3}}
2532:{\displaystyle D_{2}=\left(1-\alpha -\beta -\gamma \right)^{2}}
41:
can control the money supply by determining the monetary base.
4514:
McLeay, Michael; Radia, Amar; Thomas, Ryland (14 March 2014).
4444:
Ihrig, Jane; Weinbach, Gretchen; Wolla, Scott (3 April 2023).
4310:Ábel, István; Lehmann, Kristóf; Tapaszti, Attila (June 2016).
4270:"Repeat After Me: Banks Cannot And Do Not "Lend Out" Reserves"
223:
Rearranging these two definitions result in a third identity:
3612:{\displaystyle PHM={\frac {\gamma }{\alpha +\beta +\gamma }}}
4651:
10.58311/jeconteach/6f8dff11179466b2d32da497c5465b9cff2774ac
4159:"Basel Committee on Banking Supervision reforms - Basel III"
4702:
Federal
Reserve Education - How does the Fed Create Money?
2336:{\displaystyle D_{1}=\left(1-\alpha -\beta -\gamma \right)}
666:, author of one of the widely read intermediate textbooks (
4742:
http://www.newyorkfed.org/aboutthefed/fedpoint/fed45.html
117:) held by the general public. By definition, therefore:
1919:
are a function of the deposits at the preceding stage:
1074:, the currency/deposit ratio with respect to deposits,
4344:
Rendahl, Pontus; Freund, Lukas B. (14 December 2019).
2016:
is a function of the deposits at the preceding stage:
77:
introductory economic textbooks, however, as a simple
3572:
3510:
3496:{\displaystyle D={\frac {1}{\alpha +\beta +\gamma }}}
3462:
3383:
3349:
3315:
3288:
3188:
3088:
3019:
2991:
2897:
2803:
2734:
2706:
2633:
2546:
2477:
2449:
2406:
2350:
2288:
2260:
2217:
2189:
2103:
2082:
2022:
2001:
1925:
1904:
1825:
1543:
1411:
1270:
1125:
1080:
1037:
994:
746:
402:
323:
231:
192:
125:
3812:
3802:
2392:{\displaystyle L_{1}=\left(1-\alpha -\beta \right)}
646:mentions that the institutional development of the
4827:
3611:
3557:
3495:
3408:
3368:
3334:
3300:
3257:
3173:
3073:
3004:
2960:
2882:
2788:
2719:
2689:
2618:
2531:
2462:
2432:
2391:
2335:
2273:
2237:
2202:
2149:
2089:
2066:
2008:
1985:
1911:
1884:
1795:
1525:
1393:
1249:
1109:
1066:
1023:
974:
428:
376:
296:
213:
146:
4503:, are difficult for the central bank to control.
4375:Board of Governors of the Federal Reserve System
4083:"Central Bank Balances and Reserve Requirements"
520:
4638:"Teaching Monetary Policy with Ample Reserves"
3849:
3846:
3843:
3815:
3791:
3651:
172:(held either as currency in the vaults of the
101:) is defined as consisting of two components:
4876:(Fifth ed.). New York, NY: McGraw-Hill.
4665:Jaromir Benes; Michael Kumhof (August 2012).
1110:{\displaystyle \gamma \in \left(0,1\right)\;}
1024:{\displaystyle \alpha \in \left(0,1\right)\;}
606:Historical attempts to steer the money supply
554:commercial banks to curtail lending (one can
8:
4412:
4410:
3968:
3951:
2067:{\displaystyle PHM_{k}=\gamma \cdot D_{k-1}}
1067:{\displaystyle \beta \in \left(0,1\right)\;}
297:{\displaystyle M={\frac {1+C/D}{R/D+C/D}}B.}
4346:"Banks do not create money out of thin air"
4203:"Followup on Samuelson and monetary policy"
3946:
3944:
702:lending, turns the actual operation of the
16:Ratio of money supply to central bank money
3930:
3928:
3926:
3924:
3922:
3884:
3882:
3880:
3878:
3876:
3874:
3001:
2716:
2459:
2429:
2270:
2234:
2199:
2146:
2086:
2005:
1908:
1106:
1063:
1020:
4649:
3585:
3571:
3517:
3509:
3469:
3461:
3394:
3382:
3354:
3348:
3320:
3314:
3287:
3243:
3199:
3187:
3159:
3093:
3087:
3065:
3024:
3018:
2990:
2952:
2908:
2896:
2874:
2808:
2802:
2780:
2739:
2733:
2705:
2644:
2632:
2551:
2545:
2523:
2482:
2476:
2448:
2417:
2405:
2355:
2349:
2293:
2287:
2259:
2222:
2216:
2188:
2140:
2121:
2108:
2102:
2081:
2052:
2033:
2021:
2000:
1971:
1930:
1924:
1903:
1856:
1824:
1761:
1627:
1550:
1542:
1485:
1410:
1367:
1269:
1223:
1214:
1168:
1157:
1124:
1079:
1036:
993:
862:
789:
753:
745:
534:
412:
403:
401:
363:
349:
336:
324:
322:
277:
263:
250:
238:
230:
191:
124:
4439:
4437:
4435:
4023:
4021:
4019:
3994:. Palgrave Macmillan UK. pp. 1–10.
3991:The New Palgrave Dictionary of Economics
3895:The New Palgrave Dictionary of Economics
3840:
3788:
3774:
3760:
3746:
3732:
3718:
3704:
3690:
3676:
3662:
3648:
3631:
3453:
3419:
3282:
3268:
2985:
2971:
2700:
2443:
2254:
2183:
2159:
1885:{\displaystyle \gamma =currency/deposit}
473:The New Palgrave Dictionary of Economics
377:{\displaystyle {\frac {1+C/D}{R/D+C/D}}}
4305:
4303:
3898:. Palgrave Macmillan UK. pp. 1–5.
3870:
3835:Total reserves + last amount deposited:
4785:Macroeconomics: a European perspective
4566:from the original on 17 September 2019
4516:"Money creation in the modern economy"
4251:
4227:"The Last Days of Pushing on a String"
3935:
4528:from the original on 12 November 2019
4288:from the original on 14 November 2019
2150:{\displaystyle D_{k}=L_{k}-PHM_{k}\;}
7:
3301:{\displaystyle n\rightarrow \infty }
550:": withdrawal of central bank money
4855:(11th ed.), Worth Publishers,
4036:. Federal Reserve Bank of St. Louis
4834:(5th ed.), Worth Publishers,
4754:http://www.bis.org/publ/cpss55.pdf
4636:Ihrig, Jane; Wolla, Scott (2023).
3395:
3355:
3321:
3295:
1169:
14:
2433:{\displaystyle PHM_{1}=\gamma \;}
485:The importance of excess reserves
429:{\displaystyle {\frac {1}{R/D}}.}
4559:. Monthly Report April 2017/13.
2161:Process of money multiplication
658:notes in his graduate textbook "
4489:Romer 2019, pp. 607-608. Quote:
4268:Sheard, Paul (13 August 2013).
4000:10.1057/978-1-349-95121-5_875-2
3409:{\displaystyle PHM_{\infty }=0}
704:monetary transmission mechanism
4592:(in Danish). 23 September 2014
3292:
963:
835:
830:
756:
170:reserves of the banking sector
1:
4642:Journal of Economics Teaching
4462:10.1080/09538259.2022.2040906
4319:Financial and Economic Review
4057:"The Fed Fires 'The Big One'"
3369:{\displaystyle L_{\infty }=0}
3335:{\displaystyle D_{\infty }=0}
1995:publicly held money at stage
1031:, the excess reserves ratio,
505:Financial crisis of 2007–2010
60:and the business policies of
4667:"The Chicago Plan Revisited"
4586:"Penge, kredit og bankvæsen"
4495:, are not closely linked to
3833:
3828:
3823:
3805:
3797:
3794:
3783:
3780:
3777:
3769:
3766:
3763:
3755:
3752:
3749:
3741:
3738:
3735:
3727:
3724:
3721:
3713:
3710:
3707:
3699:
3696:
3693:
3685:
3682:
3679:
3671:
3668:
3665:
3657:
3654:
3566:
3504:
3456:
3446:
3441:
3436:
3277:
3274:
3271:
2980:
2977:
2974:
2249:
2246:
637:notes in his chapter on the
4705:"Federal Reserve Education"
4450:Review of Political Economy
591:Monetary policy in practice
386:is the money multiplier, a
72:directly, using changes in
4928:
4740:The link to this page is:
4425:Romer 2019, p. 608. Quote:
3448:Total publicly held money:
3428:
3425:
3422:
3377:
3343:
3309:
3182:
3082:
3013:
2891:
2797:
2728:
2627:
2540:
2471:
2400:
2344:
2282:
2211:
718:school of economic thought
594:
4787:(3rd ed.). Pearson.
3892:(2016). "Monetary Base".
3854:
3825:Total amount of deposits:
2238:{\displaystyle D_{0}=1\;}
652:interbank lending markets
4891:Samuelson, Paul (1948),
3988:(2017). "Money Supply".
3969:Krugman & Wells 2009
3952:Krugman & Wells 2009
616:quantity theory of money
4874:Advanced macroeconomics
4805:; Wells, Robin (2009),
4231:Harvard Business Review
4034:research.stlouisfed.org
687:Hungarian National Bank
660:Advanced Macroeconomics
622:Current monetary policy
4416:Blanchard et al. 2017.
3830:Total amount lent out:
3613:
3559:
3497:
3410:
3370:
3336:
3302:
3259:
3175:
3075:
3006:
2962:
2884:
2790:
2721:
2691:
2620:
2533:
2464:
2434:
2393:
2337:
2275:
2239:
2204:
2151:
2091:
2068:
2010:
1987:
1913:
1886:
1797:
1527:
1395:
1251:
1173:
1111:
1068:
1025:
976:
566:banks (in the US, the
540:
466:in his chapter on the
430:
378:
313:open-market operations
298:
215:
214:{\displaystyle B=R+C.}
176:or as deposits at the
148:
147:{\displaystyle M=D+C.}
4779:; Amighini, Alessia;
4278:Standard & Poor's
4188:series, St. Louis Fed
3986:Friedman, Benjamin M.
3614:
3560:
3498:
3411:
3371:
3337:
3303:
3260:
3176:
3076:
3007:
3005:{\displaystyle n=k\;}
2963:
2885:
2791:
2722:
2720:{\displaystyle n=3\;}
2692:
2621:
2534:
2465:
2463:{\displaystyle n=2\;}
2435:
2394:
2338:
2276:
2274:{\displaystyle n=1\;}
2240:
2205:
2203:{\displaystyle n=0\;}
2152:
2092:
2069:
2011:
1988:
1914:
1887:
1816:Desired Reserve Ratio
1798:
1528:
1396:
1252:
1153:
1112:
1069:
1026:
977:
691:Danmarks Nationalbank
562:via this mechanism).
460:laws regulating banks
431:
379:
299:
216:
149:
91:accounting identities
4201:(14 December 2009).
3570:
3508:
3460:
3381:
3347:
3313:
3286:
3186:
3086:
3017:
2989:
2895:
2801:
2732:
2704:
2631:
2544:
2475:
2447:
2404:
2348:
2286:
2258:
2215:
2187:
2179:Publicly held money
2101:
2080:
2020:
1999:
1923:
1902:
1823:
1541:
1409:
1268:
1123:
1078:
1035:
992:
744:
516:bestselling textbook
500:reserve requirements
492:reserve requirements
400:
321:
229:
190:
123:
29:is the ratio of the
4781:Giavazzi, Francesco
4556:Deutsche Bundesbank
2162:
2090:{\displaystyle k\;}
2009:{\displaystyle k\;}
1912:{\displaystyle k\;}
683:Deutsche Bundesbank
628:targeting inflation
574:"Loans first" model
548:pushing on a string
103:(physical) currency
70:targeting inflation
4849:Mankiw, N. Gregory
4824:Mankiw, N. Gregory
4777:Blanchard, Olivier
4616:www.stlouisfed.org
4493:high-powered money
4403:. Federal Reserve.
3609:
3555:
3493:
3406:
3366:
3332:
3298:
3255:
3171:
3071:
3002:
2958:
2880:
2786:
2717:
2687:
2616:
2529:
2460:
2430:
2389:
2333:
2271:
2235:
2200:
2160:
2147:
2087:
2076:deposits at stage
2064:
2006:
1983:
1909:
1882:
1793:
1523:
1391:
1247:
1107:
1064:
1021:
972:
697:Jaromir Benes and
568:federal funds rate
426:
374:
294:
211:
156:Additionally, the
144:
23:monetary economics
4883:978-1-260-18521-8
4862:978-1-319-26390-4
4841:978-0-7167-5237-0
4816:978-0-7167-7161-6
4794:978-1-292-08567-8
4711:on 6 January 2010
4590:Nationalbanken.dk
4225:(7 August 2012).
4009:978-1-349-95121-5
3905:978-1-349-95121-5
3890:Goodhart, Charles
3859:
3858:
3638:Amount deposited
3622:
3621:
3607:
3553:
3491:
1791:
1756:
1622:
1521:
1389:
1245:
967:
648:financial markets
612:monetarist theory
464:Benjamin Friedman
421:
372:
286:
4919:
4897:
4887:
4865:
4844:
4833:
4819:
4798:
4762:
4750:
4744:
4732:
4726:
4720:
4718:
4716:
4707:. Archived from
4700:
4694:
4691:
4685:
4684:
4682:
4680:
4671:
4662:
4656:
4655:
4653:
4633:
4627:
4626:
4624:
4622:
4608:
4602:
4601:
4599:
4597:
4582:
4576:
4575:
4573:
4571:
4565:
4552:
4544:
4538:
4537:
4535:
4533:
4511:
4505:
4497:aggregate demand
4487:
4481:
4480:
4478:
4476:
4441:
4430:
4423:
4417:
4414:
4405:
4404:
4393:
4387:
4386:
4384:
4382:
4367:
4361:
4360:
4358:
4356:
4341:
4335:
4334:
4332:
4330:
4316:
4307:
4298:
4297:
4295:
4293:
4287:
4274:
4265:
4259:
4248:
4242:
4241:
4239:
4237:
4219:
4213:
4212:
4195:
4189:
4183:
4177:
4176:
4174:
4172:
4163:
4156:
4154:
4152:
4142:
4130:
4128:
4126:
4116:
4107:
4101:
4100:
4098:
4096:
4087:
4078:
4072:
4071:
4069:
4067:
4052:
4046:
4045:
4043:
4041:
4025:
4014:
4013:
3982:
3976:
3965:
3959:
3948:
3939:
3932:
3917:
3916:
3914:
3912:
3886:
3635:Individual bank
3632:
3618:
3616:
3615:
3610:
3608:
3606:
3586:
3564:
3562:
3561:
3556:
3554:
3552:
3535:
3518:
3502:
3500:
3499:
3494:
3492:
3490:
3470:
3415:
3413:
3412:
3407:
3399:
3398:
3375:
3373:
3372:
3367:
3359:
3358:
3341:
3339:
3338:
3333:
3325:
3324:
3307:
3305:
3304:
3299:
3264:
3262:
3261:
3256:
3254:
3253:
3242:
3238:
3204:
3203:
3180:
3178:
3177:
3172:
3170:
3169:
3158:
3154:
3126:
3122:
3098:
3097:
3080:
3078:
3077:
3072:
3070:
3069:
3064:
3060:
3029:
3028:
3011:
3009:
3008:
3003:
2967:
2965:
2964:
2959:
2957:
2956:
2951:
2947:
2913:
2912:
2889:
2887:
2886:
2881:
2879:
2878:
2873:
2869:
2841:
2837:
2813:
2812:
2795:
2793:
2792:
2787:
2785:
2784:
2779:
2775:
2744:
2743:
2726:
2724:
2723:
2718:
2696:
2694:
2693:
2688:
2686:
2682:
2649:
2648:
2625:
2623:
2622:
2617:
2615:
2611:
2584:
2580:
2556:
2555:
2538:
2536:
2535:
2530:
2528:
2527:
2522:
2518:
2487:
2486:
2469:
2467:
2466:
2461:
2439:
2437:
2436:
2431:
2422:
2421:
2398:
2396:
2395:
2390:
2388:
2384:
2360:
2359:
2342:
2340:
2339:
2334:
2332:
2328:
2298:
2297:
2280:
2278:
2277:
2272:
2244:
2242:
2241:
2236:
2227:
2226:
2209:
2207:
2206:
2201:
2170:
2163:
2156:
2154:
2153:
2148:
2145:
2144:
2126:
2125:
2113:
2112:
2096:
2094:
2093:
2088:
2073:
2071:
2070:
2065:
2063:
2062:
2038:
2037:
2015:
2013:
2012:
2007:
1992:
1990:
1989:
1984:
1982:
1981:
1963:
1959:
1935:
1934:
1918:
1916:
1915:
1910:
1891:
1889:
1888:
1883:
1860:
1818:
1802:
1800:
1799:
1794:
1792:
1790:
1773:
1762:
1757:
1755:
1717:
1628:
1623:
1621:
1583:
1551:
1532:
1530:
1529:
1524:
1522:
1520:
1503:
1486:
1454:
1450:
1400:
1398:
1397:
1392:
1390:
1388:
1368:
1256:
1254:
1253:
1248:
1246:
1244:
1224:
1219:
1218:
1213:
1209:
1205:
1172:
1167:
1116:
1114:
1113:
1108:
1105:
1101:
1073:
1071:
1070:
1065:
1062:
1058:
1030:
1028:
1027:
1022:
1019:
1015:
981:
979:
978:
973:
968:
966:
866:
833:
793:
754:
731:geometric series
643:The New Palgrave
635:Charles Goodhart
585:endogenous money
538:
435:
433:
432:
427:
422:
420:
416:
404:
383:
381:
380:
375:
373:
371:
367:
353:
344:
340:
325:
303:
301:
300:
295:
287:
285:
281:
267:
258:
254:
239:
220:
218:
217:
212:
174:commercial banks
153:
151:
150:
145:
111:deposit accounts
62:commercial banks
58:legal regulation
27:money multiplier
4927:
4926:
4922:
4921:
4920:
4918:
4917:
4916:
4912:Monetary policy
4902:
4901:
4900:
4890:
4884:
4868:
4863:
4847:
4842:
4822:
4817:
4801:
4795:
4775:
4771:
4766:
4765:
4751:
4747:
4733:
4729:
4714:
4712:
4703:
4701:
4697:
4692:
4688:
4678:
4676:
4669:
4664:
4663:
4659:
4635:
4634:
4630:
4620:
4618:
4610:
4609:
4605:
4595:
4593:
4584:
4583:
4579:
4569:
4567:
4563:
4550:
4546:
4545:
4541:
4531:
4529:
4521:Bank of England
4513:
4512:
4508:
4488:
4484:
4474:
4472:
4443:
4442:
4433:
4424:
4420:
4415:
4408:
4395:
4394:
4390:
4380:
4378:
4369:
4368:
4364:
4354:
4352:
4343:
4342:
4338:
4328:
4326:
4314:
4309:
4308:
4301:
4291:
4289:
4285:
4272:
4267:
4266:
4262:
4249:
4245:
4235:
4233:
4221:
4220:
4216:
4197:
4196:
4192:
4184:
4180:
4170:
4168:
4161:
4157:
4150:
4148:
4140:
4136:
4124:
4122:
4121:. December 2010
4114:
4110:
4108:
4104:
4094:
4092:
4085:
4080:
4079:
4075:
4065:
4063:
4054:
4053:
4049:
4039:
4037:
4027:
4026:
4017:
4010:
3984:
3983:
3979:
3966:
3962:
3949:
3942:
3933:
3920:
3910:
3908:
3906:
3888:
3887:
3872:
3867:
3855:Table sources:
3841:
3821:
3813:
3807:Total reserves:
3803:
3798:
3795:
3627:
3590:
3568:
3567:
3536:
3519:
3506:
3505:
3474:
3458:
3457:
3454:
3438:Total deposits:
3434:
3429:
3426:
3423:
3420:
3390:
3379:
3378:
3350:
3345:
3344:
3316:
3311:
3310:
3284:
3283:
3216:
3212:
3211:
3195:
3184:
3183:
3132:
3128:
3127:
3106:
3102:
3089:
3084:
3083:
3038:
3034:
3033:
3020:
3015:
3014:
2987:
2986:
2925:
2921:
2920:
2904:
2893:
2892:
2847:
2843:
2842:
2821:
2817:
2804:
2799:
2798:
2753:
2749:
2748:
2735:
2730:
2729:
2702:
2701:
2660:
2656:
2640:
2629:
2628:
2589:
2585:
2564:
2560:
2547:
2542:
2541:
2496:
2492:
2491:
2478:
2473:
2472:
2445:
2444:
2413:
2402:
2401:
2368:
2364:
2351:
2346:
2345:
2306:
2302:
2289:
2284:
2283:
2256:
2255:
2218:
2213:
2212:
2185:
2184:
2169:
2166:
2136:
2117:
2104:
2099:
2098:
2078:
2077:
2048:
2029:
2018:
2017:
1997:
1996:
1967:
1943:
1939:
1926:
1921:
1920:
1900:
1899:
1898:loans at stage
1821:
1820:
1813:
1809:
1806:
1803:
1774:
1763:
1718:
1629:
1584:
1552:
1539:
1538:
1533:
1504:
1487:
1434:
1430:
1407:
1406:
1401:
1372:
1266:
1265:
1257:
1228:
1183:
1179:
1175:
1174:
1121:
1120:
1091:
1087:
1076:
1075:
1048:
1044:
1033:
1032:
1005:
1001:
990:
989:
834:
755:
742:
741:
726:
679:Bank of England
675:Federal Reserve
624:
608:
599:
597:Monetary policy
593:
576:
539:
532:
496:excess reserves
487:
452:
408:
398:
397:
345:
326:
319:
318:
259:
240:
227:
226:
188:
187:
121:
120:
93:: Usually, the
87:
17:
12:
11:
5:
4925:
4923:
4915:
4914:
4904:
4903:
4899:
4898:
4888:
4882:
4866:
4861:
4853:Macroeconomics
4845:
4840:
4830:Macroeconomics
4820:
4815:
4807:Macroeconomics
4799:
4793:
4772:
4770:
4767:
4764:
4763:
4761:
4760:
4745:
4739:
4738:
4727:
4725:
4724:
4695:
4686:
4657:
4628:
4603:
4577:
4539:
4506:
4482:
4456:(2): 555–571.
4431:
4418:
4406:
4388:
4377:. 8 March 2018
4362:
4336:
4299:
4260:
4243:
4214:
4208:New York Times
4190:
4178:
4147:. January 2013
4102:
4073:
4047:
4015:
4008:
3977:
3960:
3940:
3918:
3904:
3869:
3868:
3866:
3863:
3857:
3856:
3852:
3851:
3848:
3845:
3842:
3838:
3837:
3832:
3827:
3822:
3818:
3817:
3814:
3810:
3809:
3804:
3800:
3799:
3796:
3793:
3790:
3786:
3785:
3782:
3779:
3776:
3772:
3771:
3768:
3765:
3762:
3758:
3757:
3754:
3751:
3748:
3744:
3743:
3740:
3737:
3734:
3730:
3729:
3726:
3723:
3720:
3716:
3715:
3712:
3709:
3706:
3702:
3701:
3698:
3695:
3692:
3688:
3687:
3684:
3681:
3678:
3674:
3673:
3670:
3667:
3664:
3660:
3659:
3656:
3653:
3650:
3646:
3645:
3642:
3639:
3636:
3626:
3623:
3620:
3619:
3605:
3602:
3599:
3596:
3593:
3589:
3584:
3581:
3578:
3575:
3565:
3551:
3548:
3545:
3542:
3539:
3534:
3531:
3528:
3525:
3522:
3516:
3513:
3503:
3489:
3486:
3483:
3480:
3477:
3473:
3468:
3465:
3455:
3451:
3450:
3445:
3440:
3435:
3431:
3430:
3427:
3424:
3421:
3417:
3416:
3405:
3402:
3397:
3393:
3389:
3386:
3376:
3365:
3362:
3357:
3353:
3342:
3331:
3328:
3323:
3319:
3308:
3297:
3294:
3291:
3280:
3279:
3276:
3273:
3270:
3266:
3265:
3252:
3249:
3246:
3241:
3237:
3234:
3231:
3228:
3225:
3222:
3219:
3215:
3210:
3207:
3202:
3198:
3194:
3191:
3181:
3168:
3165:
3162:
3157:
3153:
3150:
3147:
3144:
3141:
3138:
3135:
3131:
3125:
3121:
3118:
3115:
3112:
3109:
3105:
3101:
3096:
3092:
3081:
3068:
3063:
3059:
3056:
3053:
3050:
3047:
3044:
3041:
3037:
3032:
3027:
3023:
3012:
3000:
2997:
2994:
2983:
2982:
2979:
2976:
2973:
2969:
2968:
2955:
2950:
2946:
2943:
2940:
2937:
2934:
2931:
2928:
2924:
2919:
2916:
2911:
2907:
2903:
2900:
2890:
2877:
2872:
2868:
2865:
2862:
2859:
2856:
2853:
2850:
2846:
2840:
2836:
2833:
2830:
2827:
2824:
2820:
2816:
2811:
2807:
2796:
2783:
2778:
2774:
2771:
2768:
2765:
2762:
2759:
2756:
2752:
2747:
2742:
2738:
2727:
2715:
2712:
2709:
2698:
2697:
2685:
2681:
2678:
2675:
2672:
2669:
2666:
2663:
2659:
2655:
2652:
2647:
2643:
2639:
2636:
2626:
2614:
2610:
2607:
2604:
2601:
2598:
2595:
2592:
2588:
2583:
2579:
2576:
2573:
2570:
2567:
2563:
2559:
2554:
2550:
2539:
2526:
2521:
2517:
2514:
2511:
2508:
2505:
2502:
2499:
2495:
2490:
2485:
2481:
2470:
2458:
2455:
2452:
2441:
2440:
2428:
2425:
2420:
2416:
2412:
2409:
2399:
2387:
2383:
2380:
2377:
2374:
2371:
2367:
2363:
2358:
2354:
2343:
2331:
2327:
2324:
2321:
2318:
2315:
2312:
2309:
2305:
2301:
2296:
2292:
2281:
2269:
2266:
2263:
2252:
2251:
2248:
2245:
2233:
2230:
2225:
2221:
2210:
2198:
2195:
2192:
2181:
2180:
2177:
2174:
2171:
2167:
2158:
2157:
2143:
2139:
2135:
2132:
2129:
2124:
2120:
2116:
2111:
2107:
2085:
2074:
2061:
2058:
2055:
2051:
2047:
2044:
2041:
2036:
2032:
2028:
2025:
2004:
1993:
1980:
1977:
1974:
1970:
1966:
1962:
1958:
1955:
1952:
1949:
1946:
1942:
1938:
1933:
1929:
1907:
1881:
1878:
1875:
1872:
1869:
1866:
1863:
1859:
1855:
1852:
1849:
1846:
1843:
1840:
1837:
1834:
1831:
1828:
1811:
1807:
1789:
1786:
1783:
1780:
1777:
1772:
1769:
1766:
1760:
1754:
1751:
1748:
1745:
1742:
1739:
1736:
1733:
1730:
1727:
1724:
1721:
1716:
1713:
1710:
1707:
1704:
1701:
1698:
1695:
1692:
1689:
1686:
1683:
1680:
1677:
1674:
1671:
1668:
1665:
1662:
1659:
1656:
1653:
1650:
1647:
1644:
1641:
1638:
1635:
1632:
1626:
1620:
1617:
1614:
1611:
1608:
1605:
1602:
1599:
1596:
1593:
1590:
1587:
1582:
1579:
1576:
1573:
1570:
1567:
1564:
1561:
1558:
1555:
1549:
1546:
1537:
1519:
1516:
1513:
1510:
1507:
1502:
1499:
1496:
1493:
1490:
1484:
1481:
1478:
1475:
1472:
1469:
1466:
1463:
1460:
1457:
1453:
1449:
1446:
1443:
1440:
1437:
1433:
1429:
1426:
1423:
1420:
1417:
1414:
1405:
1387:
1384:
1381:
1378:
1375:
1371:
1366:
1363:
1360:
1357:
1354:
1351:
1348:
1345:
1342:
1339:
1336:
1333:
1330:
1327:
1324:
1321:
1318:
1315:
1312:
1309:
1306:
1303:
1300:
1297:
1294:
1291:
1288:
1285:
1282:
1279:
1276:
1273:
1264:
1243:
1240:
1237:
1234:
1231:
1227:
1222:
1217:
1212:
1208:
1204:
1201:
1198:
1195:
1192:
1189:
1186:
1182:
1178:
1171:
1166:
1163:
1160:
1156:
1152:
1149:
1146:
1143:
1140:
1137:
1134:
1131:
1128:
1119:
1104:
1100:
1097:
1094:
1090:
1086:
1083:
1061:
1057:
1054:
1051:
1047:
1043:
1040:
1018:
1014:
1011:
1008:
1004:
1000:
997:
983:
982:
971:
965:
962:
959:
956:
953:
950:
947:
944:
941:
938:
935:
932:
929:
926:
923:
920:
917:
914:
911:
908:
905:
902:
899:
896:
893:
890:
887:
884:
881:
878:
875:
872:
869:
865:
861:
858:
855:
852:
849:
846:
843:
840:
837:
832:
829:
826:
823:
820:
817:
814:
811:
808:
805:
802:
799:
796:
792:
788:
785:
782:
779:
776:
773:
770:
767:
764:
761:
758:
752:
749:
725:
722:
715:post-Keynesian
699:Michael Kumhof
668:Macroeconomics
664:Gregory Mankiw
623:
620:
607:
604:
592:
589:
575:
572:
537:, pp. 353–354)
535:Samuelson 1948
530:
518:in 1948 that:
512:Paul Samuelson
486:
483:
451:
450:Interpretation
448:
446:(base money).
425:
419:
415:
411:
407:
370:
366:
362:
359:
356:
352:
348:
343:
339:
335:
332:
329:
293:
290:
284:
280:
276:
273:
270:
266:
262:
257:
253:
249:
246:
243:
237:
234:
210:
207:
204:
201:
198:
195:
143:
140:
137:
134:
131:
128:
86:
83:
74:interest rates
15:
13:
10:
9:
6:
4:
3:
2:
4924:
4913:
4910:
4909:
4907:
4896:
4895:
4889:
4885:
4879:
4875:
4871:
4867:
4864:
4858:
4854:
4850:
4846:
4843:
4837:
4832:
4831:
4825:
4821:
4818:
4812:
4809:, Macmillan,
4808:
4804:
4803:Krugman, Paul
4800:
4796:
4790:
4786:
4782:
4778:
4774:
4773:
4768:
4758:
4757:
4755:
4749:
4746:
4743:
4736:
4735:
4731:
4728:
4722:
4721:
4710:
4706:
4699:
4696:
4690:
4687:
4675:
4668:
4661:
4658:
4652:
4647:
4643:
4639:
4632:
4629:
4617:
4613:
4607:
4604:
4591:
4587:
4581:
4578:
4562:
4558:
4557:
4549:
4543:
4540:
4527:
4523:
4522:
4517:
4510:
4507:
4504:
4500:
4498:
4494:
4486:
4483:
4471:
4467:
4463:
4459:
4455:
4451:
4447:
4440:
4438:
4436:
4432:
4429:
4428:disturbances.
4422:
4419:
4413:
4411:
4407:
4402:
4398:
4397:Bernanke, Ben
4392:
4389:
4376:
4372:
4366:
4363:
4351:
4347:
4340:
4337:
4324:
4320:
4313:
4306:
4304:
4300:
4284:
4280:
4279:
4271:
4264:
4261:
4257:
4253:
4247:
4244:
4232:
4228:
4224:
4218:
4215:
4210:
4209:
4204:
4200:
4199:Krugman, Paul
4194:
4191:
4187:
4182:
4179:
4167:
4160:
4146:
4139:
4133:
4120:
4113:
4106:
4103:
4091:
4084:
4077:
4074:
4062:
4058:
4051:
4048:
4035:
4031:
4024:
4022:
4020:
4016:
4011:
4005:
4001:
3997:
3993:
3992:
3987:
3981:
3978:
3974:
3970:
3964:
3961:
3957:
3953:
3947:
3945:
3941:
3937:
3931:
3929:
3927:
3925:
3923:
3919:
3907:
3901:
3897:
3896:
3891:
3885:
3883:
3881:
3879:
3877:
3875:
3871:
3864:
3862:
3853:
3839:
3836:
3831:
3826:
3820:
3819:
3811:
3808:
3801:
3787:
3773:
3759:
3745:
3731:
3717:
3703:
3689:
3675:
3661:
3647:
3643:
3640:
3637:
3634:
3633:
3630:
3624:
3603:
3600:
3597:
3594:
3591:
3587:
3582:
3579:
3576:
3573:
3549:
3546:
3543:
3540:
3537:
3532:
3529:
3526:
3523:
3520:
3514:
3511:
3487:
3484:
3481:
3478:
3475:
3471:
3466:
3463:
3452:
3449:
3444:
3439:
3433:
3432:
3418:
3403:
3400:
3391:
3387:
3384:
3363:
3360:
3351:
3329:
3326:
3317:
3289:
3281:
3267:
3250:
3247:
3244:
3239:
3235:
3232:
3229:
3226:
3223:
3220:
3217:
3213:
3208:
3205:
3200:
3196:
3192:
3189:
3166:
3163:
3160:
3155:
3151:
3148:
3145:
3142:
3139:
3136:
3133:
3129:
3123:
3119:
3116:
3113:
3110:
3107:
3103:
3099:
3094:
3090:
3066:
3061:
3057:
3054:
3051:
3048:
3045:
3042:
3039:
3035:
3030:
3025:
3021:
2998:
2995:
2992:
2984:
2970:
2953:
2948:
2944:
2941:
2938:
2935:
2932:
2929:
2926:
2922:
2917:
2914:
2909:
2905:
2901:
2898:
2875:
2870:
2866:
2863:
2860:
2857:
2854:
2851:
2848:
2844:
2838:
2834:
2831:
2828:
2825:
2822:
2818:
2814:
2809:
2805:
2781:
2776:
2772:
2769:
2766:
2763:
2760:
2757:
2754:
2750:
2745:
2740:
2736:
2713:
2710:
2707:
2699:
2683:
2679:
2676:
2673:
2670:
2667:
2664:
2661:
2657:
2653:
2650:
2645:
2641:
2637:
2634:
2612:
2608:
2605:
2602:
2599:
2596:
2593:
2590:
2586:
2581:
2577:
2574:
2571:
2568:
2565:
2561:
2557:
2552:
2548:
2524:
2519:
2515:
2512:
2509:
2506:
2503:
2500:
2497:
2493:
2488:
2483:
2479:
2456:
2453:
2450:
2442:
2426:
2423:
2418:
2414:
2410:
2407:
2385:
2381:
2378:
2375:
2372:
2369:
2365:
2361:
2356:
2352:
2329:
2325:
2322:
2319:
2316:
2313:
2310:
2307:
2303:
2299:
2294:
2290:
2267:
2264:
2261:
2253:
2231:
2228:
2223:
2219:
2196:
2193:
2190:
2182:
2178:
2175:
2172:
2165:
2164:
2141:
2137:
2133:
2130:
2127:
2122:
2118:
2114:
2109:
2105:
2083:
2075:
2059:
2056:
2053:
2049:
2045:
2042:
2039:
2034:
2030:
2026:
2023:
2002:
1994:
1978:
1975:
1972:
1968:
1964:
1960:
1956:
1953:
1950:
1947:
1944:
1940:
1936:
1931:
1927:
1905:
1897:
1896:
1895:
1892:
1879:
1876:
1873:
1870:
1867:
1864:
1861:
1857:
1853:
1850:
1847:
1844:
1841:
1838:
1835:
1832:
1829:
1826:
1817:
1787:
1784:
1781:
1778:
1775:
1770:
1767:
1764:
1758:
1752:
1749:
1746:
1743:
1740:
1737:
1734:
1731:
1728:
1725:
1722:
1719:
1714:
1711:
1708:
1705:
1702:
1699:
1696:
1693:
1690:
1687:
1684:
1681:
1678:
1675:
1672:
1669:
1666:
1663:
1660:
1657:
1654:
1651:
1648:
1645:
1642:
1639:
1636:
1633:
1630:
1624:
1618:
1615:
1612:
1609:
1606:
1603:
1600:
1597:
1594:
1591:
1588:
1585:
1580:
1577:
1574:
1571:
1568:
1565:
1562:
1559:
1556:
1553:
1547:
1544:
1536:
1517:
1514:
1511:
1508:
1505:
1500:
1497:
1494:
1491:
1488:
1482:
1479:
1476:
1473:
1470:
1467:
1464:
1461:
1458:
1455:
1451:
1447:
1444:
1441:
1438:
1435:
1431:
1427:
1424:
1421:
1418:
1415:
1412:
1404:
1385:
1382:
1379:
1376:
1373:
1369:
1364:
1361:
1358:
1355:
1352:
1349:
1346:
1343:
1340:
1337:
1334:
1331:
1328:
1325:
1322:
1319:
1316:
1313:
1310:
1307:
1304:
1301:
1298:
1295:
1292:
1289:
1286:
1283:
1280:
1277:
1274:
1271:
1263:
1260:
1241:
1238:
1235:
1232:
1229:
1225:
1220:
1215:
1210:
1206:
1202:
1199:
1196:
1193:
1190:
1187:
1184:
1180:
1176:
1164:
1161:
1158:
1154:
1150:
1147:
1144:
1141:
1138:
1135:
1132:
1129:
1126:
1118:
1102:
1098:
1095:
1092:
1088:
1084:
1081:
1059:
1055:
1052:
1049:
1045:
1041:
1038:
1016:
1012:
1009:
1006:
1002:
998:
995:
986:
969:
960:
957:
954:
951:
948:
945:
942:
939:
936:
933:
930:
927:
924:
921:
918:
915:
912:
909:
906:
903:
900:
897:
894:
891:
888:
885:
882:
879:
876:
873:
870:
867:
863:
859:
856:
853:
850:
847:
844:
841:
838:
827:
824:
821:
818:
815:
812:
809:
806:
803:
800:
797:
794:
790:
786:
783:
780:
777:
774:
771:
768:
765:
762:
759:
750:
747:
740:
739:
738:
734:
732:
723:
721:
719:
716:
713:
708:
705:
700:
695:
692:
688:
684:
680:
676:
671:
669:
665:
661:
657:
653:
649:
644:
640:
639:monetary base
636:
632:
629:
621:
619:
617:
613:
605:
603:
598:
590:
588:
586:
580:
573:
571:
569:
563:
561:
557:
553:
549:
545:
536:
529:
526:
519:
517:
514:noted in his
513:
508:
506:
501:
497:
493:
484:
482:
480:
475:
474:
469:
465:
461:
457:
449:
447:
445:
441:
436:
423:
417:
413:
409:
405:
395:
391:
389:
384:
368:
364:
360:
357:
354:
350:
346:
341:
337:
333:
330:
327:
316:
314:
310:
304:
291:
288:
282:
278:
274:
271:
268:
264:
260:
255:
251:
247:
244:
241:
235:
232:
224:
221:
208:
205:
202:
199:
196:
193:
185:
183:
179:
175:
171:
167:
163:
159:
158:monetary base
154:
141:
138:
135:
132:
129:
126:
118:
116:
112:
108:
104:
100:
96:
92:
84:
82:
80:
75:
71:
65:
63:
59:
55:
51:
50:reserve ratio
47:
42:
40:
36:
35:monetary base
32:
28:
24:
19:
4893:
4873:
4870:Romer, David
4852:
4829:
4806:
4784:
4748:
4730:
4713:. Retrieved
4709:the original
4698:
4689:
4677:. Retrieved
4673:
4660:
4641:
4631:
4619:. Retrieved
4615:
4606:
4594:. Retrieved
4589:
4580:
4568:. Retrieved
4554:
4542:
4530:. Retrieved
4519:
4509:
4502:
4490:
4485:
4473:. Retrieved
4453:
4449:
4426:
4421:
4391:
4379:. Retrieved
4374:
4365:
4353:. Retrieved
4349:
4339:
4327:. Retrieved
4322:
4318:
4290:. Retrieved
4276:
4263:
4246:
4234:. Retrieved
4230:
4217:
4206:
4193:
4181:
4169:. Retrieved
4165:
4149:. Retrieved
4144:
4123:. Retrieved
4118:
4105:
4093:. Retrieved
4089:
4081:Simon Gray.
4076:
4064:. Retrieved
4060:
4055:Haber, Bob.
4050:
4038:. Retrieved
4033:
3990:
3980:
3963:
3909:. Retrieved
3894:
3860:
3834:
3829:
3824:
3806:
3628:
3447:
3443:Total loans:
3442:
3437:
1893:
1815:
1804:
1534:
1402:
1261:
1258:
987:
984:
735:
727:
709:
696:
672:
667:
659:
642:
633:
625:
609:
600:
581:
577:
564:
559:
555:
551:
543:
541:
524:
521:
509:
488:
471:
468:money supply
453:
437:
396:
392:
385:
317:
305:
225:
222:
186:
181:
178:central bank
165:
161:
155:
119:
114:
106:
98:
95:money supply
88:
66:
43:
39:central bank
31:money supply
26:
20:
18:
4715:21 December
4644:: 114–127.
4570:16 November
4532:14 November
4292:14 November
4252:Mankiw 2002
4223:Blyth, Mark
3956:pp. 393–396
3936:Mankiw 2022
656:David Romer
309:exogenously
4621:19 October
4596:19 October
4475:19 October
4381:19 October
4355:19 October
4329:19 October
4325:(2): 33–58
4236:19 October
3911:19 October
3865:References
650:, notably
595:See also:
456:households
388:multiplier
168:) and the
85:Definition
54:households
46:reciprocal
4894:Economics
4470:0953-8259
4132:Basel III
3644:Reserves
3641:Lent out
3604:γ
3598:β
3592:α
3588:γ
3550:γ
3544:β
3538:α
3533:β
3530:−
3527:α
3524:−
3488:γ
3482:β
3476:α
3396:∞
3356:∞
3322:∞
3296:∞
3293:→
3248:−
3236:γ
3233:−
3230:β
3227:−
3224:α
3221:−
3209:γ
3164:−
3152:γ
3149:−
3146:β
3143:−
3140:α
3137:−
3120:β
3117:−
3114:α
3111:−
3058:γ
3055:−
3052:β
3049:−
3046:α
3043:−
2945:γ
2942:−
2939:β
2936:−
2933:α
2930:−
2918:γ
2867:γ
2864:−
2861:β
2858:−
2855:α
2852:−
2835:β
2832:−
2829:α
2826:−
2773:γ
2770:−
2767:β
2764:−
2761:α
2758:−
2680:γ
2677:−
2674:β
2671:−
2668:α
2665:−
2654:γ
2609:γ
2606:−
2603:β
2600:−
2597:α
2594:−
2578:β
2575:−
2572:α
2569:−
2516:γ
2513:−
2510:β
2507:−
2504:α
2501:−
2427:γ
2382:β
2379:−
2376:α
2373:−
2326:γ
2323:−
2320:β
2317:−
2314:α
2311:−
2173:Deposits
2128:−
2057:−
2046:⋅
2043:γ
1976:−
1965:⋅
1957:β
1954:−
1951:α
1948:−
1827:γ
1788:γ
1782:β
1776:α
1771:γ
1518:γ
1512:β
1506:α
1501:β
1498:−
1495:α
1492:−
1456:⋅
1448:β
1445:−
1442:α
1439:−
1386:γ
1380:β
1374:α
1370:γ
1338:⋅
1335:γ
1242:γ
1236:β
1230:α
1203:γ
1200:−
1197:β
1194:−
1191:α
1188:−
1170:∞
1155:∑
1085:∈
1082:γ
1042:∈
1039:β
999:∈
996:α
712:heterodox
490:maintain
479:shorthand
79:shorthand
4906:Category
4872:(2019).
4851:(2022),
4826:(2002),
4783:(2017).
4561:Archived
4526:Archived
4399:(2006).
4283:Archived
4186:EXCRESNS
4040:4 August
614:and the
544:required
531:—
4769:Sources
4679:19 July
4171:19 July
4166:bis.org
4151:19 July
4145:bis.org
4135:assets.
4125:19 July
4119:bis.org
4095:19 July
4066:30 June
3850:100.00
3847:357.05
3844:457.05
3652:100.00
724:Example
552:compels
525:compel.
48:of the
33:to the
4880:
4859:
4838:
4813:
4791:
4468:
4256:p. 489
4061:Forbes
4006:
3973:p. 395
3902:
3816:89.26
3792:10.74
3781:10.74
3778:13.42
3767:13.42
3764:16.78
3753:16.78
3750:20.97
3739:20.97
3736:26.21
3725:26.21
3722:32.77
3711:32.77
3708:40.96
3700:10.24
3697:40.96
3694:51.20
3686:12.80
3683:51.20
3680:64.00
3672:16.00
3669:64.00
3666:80.00
3658:20.00
3655:80.00
2176:Loans
1812:β
1808:α
1805:where
685:, the
109:) and
56:, the
25:, the
4670:(PDF)
4564:(PDF)
4551:(PDF)
4315:(PDF)
4286:(PDF)
4273:(PDF)
4162:(PDF)
4141:(PDF)
4115:(PDF)
4086:(PDF)
3784:2.68
3770:3.36
3756:4.19
3742:5.24
3728:6.55
3714:8.19
3625:Table
442:over
4878:ISBN
4857:ISBN
4836:ISBN
4811:ISBN
4789:ISBN
4717:2009
4681:2023
4623:2023
4598:2023
4572:2019
4534:2019
4477:2023
4466:ISSN
4383:2023
4357:2023
4350:CEPR
4331:2023
4294:2019
4238:2023
4173:2023
4153:2023
4127:2023
4097:2023
4068:2023
4042:2023
4004:ISBN
3913:2023
3900:ISBN
1819:and
689:and
560:push
556:pull
4674:IMF
4646:doi
4458:doi
4090:IMF
3996:doi
641:in
470:in
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180:) (
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4908::
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