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Money Creation : Death of the Money Multiplier
Faure, Alexander Pierre - 2013
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 …
Persistent link: https://www.econbiz.de/10014158596
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Money Multiplier Under Reserve Option Mechanism
Akturk, Halit - 2015
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 …
Persistent link: https://www.econbiz.de/10013021622
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Excess liquidity and the usefulness of the money multiplier
Berk, Jan Marc; End, Jan-Willem van den - In: Credit and capital markets : Kredit und Kapital 55 (2022) 4, pp. 457-488
We model the behaviour of banks as a main driver of the changing components of the money multiplier (MM). So we provide …
Persistent link: https://www.econbiz.de/10014518597
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Money Creation : Empirical Evidence of Endogeneity
Faure, Alexander Pierre - 2013
Many scholars have fought valiantly to change perceptions on the process of money creation. However, misconceptions remain in place some quarters. In order to demonstrate empirically that a new bank loan creates a new bank deposit (without the bank having to recruit a new deposit), the author...
Persistent link: https://www.econbiz.de/10013082232
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Money Creation : Misconceptions: A Small Bank Cannot Create Money
Faure, Alexander Pierre - 2012
Apart from the main misconception of money creation, that is, the exogenous-endogenous money creation debate, there exist a number of lesser misconceptions, including that banks are 'fully lent' when they have no excess reserves, that money creation begins with a new bank deposit, and that a...
Persistent link: https://www.econbiz.de/10013102919
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Money Creation : The Sources
Faure, Alexander Pierre - 2012
The endogenous-exogenous money debate is a futile one. Exogenous money creation, based on the money multiplier, is not …
Persistent link: https://www.econbiz.de/10013103829
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Money Creation : Reflections of an Ex-Central Banker on Exogenous/Endogenous Money
Faure, Alexander Pierre - 2012
reserves and therefore control of bank deposit (money) creation via the money multiplier can exist, but this has nothing to do … because of its severe interest rate consequences. New bank deposits (money), also under a reserves-multiplier model, can only … creation (based on the multiplier), the US, is showing distinct signs of recognition of the source of money creation being as …
Persistent link: https://www.econbiz.de/10013105509
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Money Creation : Role of Bank Liquidity
Faure, Alexander Pierre - 2013
The state of bank liquidity, measured as the banks' net excess reserves (NER) with the central bank, is a critical element of the successful implementation of monetary policy. Central banks have absolute control over NER and manipulate it to bring about a positive NER (in QE periods) to drive...
Persistent link: https://www.econbiz.de/10013082853
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Money Creation : Misconceptions: Quantitative Easing Creates Money
Faure, Alexander Pierre - 2013
There is a profound misconception amongst certain commentators on money and banking: that quantitative easing creates new money. The misconception is either: (1) that new money is injected into the economy; (2) newly created excess reserves can be used by the banks to make new loans. Neither of...
Persistent link: https://www.econbiz.de/10013083027
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Money Creation : Misconceptions: Government Spending Creates Money
Faure, Alexander Pierre - 2013
It is sometimes stated that government spending leads to money creation, at the same time providing the banks with excess reserves, leading to further money creation. This is so, but the statement ignores the fact that the money stock (and reserves) was depleted when revenue was raised in order...
Persistent link: https://www.econbiz.de/10013083185