Chapter 14 Outline

Chapter 14 Outline - Chapter 14: Determinants of the Money...

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Department of Economics South Dakota State University Chapter 14: Determinants of the Money Supply Econ 330: Money and Banking Fall 2007 Prof. Joseph Santos This outline draws from Frederic Mishkin’s Money, Banking and Financial Markets (2007) and, as such, contains copy written material. Please do not quote without proper citation.
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Department of Economics South Dakota State University [1] Deriving the M1 Money Multiplier The required-reserve ratio, RR/D The currency-to-deposit ratio, C/D The excess-reserve-to-deposit ratio, ER/D The money multiplier, m The braces indicate that we are treating the ratio as a constant in equilibrium. [1] Deriving the M1 Money Multiplier [2] Factors that Determine the Money Supply [3] Factors that Determine the Money Supply (continued) ] / [ ] / [ ] / [ ] / [ D ER D RR D C D C ER RR C D C MB M m + + + = + + + = = 1 This outline draws from Frederic Mishkin’s Money, Banking and Financial Markets (2007) and, as such, contains copy written material. Please do not quote without proper citation.
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Chapter 14 Outline - Chapter 14: Determinants of the Money...

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