Work

The Multiplier Approach to the Money Supply Process: A Precautionary Note

Year: 1991

Type: article

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.

DOI: 10.20955/r.73.47-64

Authors: Michelle R. Garfinkel, Daniel L. Thornton

Institutions: University of California, Irvine, Federal Reserve Bank of St. Louis

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: gold

OpenAlex ID: W1598251548

FWCI: 12.62

Cites: 23

Cited by: 28

Related to: 10