This paper introduces a generalized money (M2) multiplier formula to the literature for a monetary system with Reserve … Option Mechanism (ROM). Various features of the proposed multiplier are then explored using monthly Turkish data during the … multiplier with the adoption of ROM. We provide evidence for substantial change in the seasonal pattern of the multiplier, cash …

In textbooks on the theory of money it is standard practice to hold both reserves and deposits fixed to study the … relationship between the quantity of currency in the economy and the money multiplier. But doing so leads to a result that is … lending will decrease, causing a fall in both the money supply and the money multiplier. Specifically, when reserves are …

the money multiplier model/strict money-rule model) and the interest rate-focused model. The former only exists in theory … to say goodbye to the money multiplier …

We model the behaviour of banks as a main driver of the changing components of the money multiplier (MM). So we provide …