Abstract
Michelle R. Garfinkel and Daniel L. Thornton show that the money multiplier is not independent of monetary policy actions as is commonly assumed. They note that, for the multiplier to be independent of policy actions, movements in the ratio of currency to checkable deposits (the most important determinant of the multiplier) must be due to individuals simply adjusting their holdings of currency and checkable deposits.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
