Monetary Theory
●
31
It is evident from the above formula that if the payment/deposits ratio is
1, then a bank’s maximum lending amount is equal
to the monetary base held
by the bank. But in reality,
K must be less than 1 so that the monetary base
can support a larger amount of loans and the corresponding money, which is
the idea of money expansion.
Chia sẻ với bạn bè của bạn: