M1 Money Multiplier Still Crashing: Each $1 Increase in Monetary …

Posted by thientu1984 in Uncategorized on 16-03-2010

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The M1 money multiplier just slipped below 1. So each $1 increase in reserves (monetary base) results in the money supply increasing by $0.95 (OK, so banks have substantially increased their holding of excess reserves while the M1 money

Can the Federal Reserve Shrink the Money Stock Rapidly Now that It …

Posted by bobwhite in Uncategorized on 27-06-2009

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Tyler Cowen asks: >Marginal Revolution: Paying interest on reserves, and why it should be easy to disarm future inflationary pressures. Do I believe it? The correct answer is “maybe.” If inflationary pressure comes because banks and …

Worthwhile Canadian Initiative: Why an excess demand for money …

Posted by blueapple in Uncategorized on 02-05-2009

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Suppose there were an excess demand for antique furniture. Antique furniture is not part of GDP. By Walras Law, if there were an excess demand for antique furniture, there must be an equal and offsetting excess supply of something else,