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Peněžní a úvěrové multiplikátory ve vybraných ekonomikách
[Money and Credit Multipliers in Selected Economies]

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  • Zbyněk Revenda

Abstract

The latest financial crisis has led to significant changes in the central bank's monetary policies. They have tried to respond by expansionary monetary policy in the different forms. We analyze if commercial and other banks use a higher quantity of reserves in order to increase granting of loans into the economy. Analysis is focused on the tendencies in money and credit multipliers. There are four analysed economics during the period 2008-2014: Czech Republic, European Monetary Union, Great Britain and the USA. No surprise that multipliers had tendencies to decline, especially from high values in the Great Britain and the USA. Development was quite surprising in the EMU, where all multipliers were very stable. We have observed the biggest exceptions in the USA, and the Czech Republic, respectively. Money multiplier of M1 is still less than 1 in the USA. Czech Republic is specific according to the values of credit multiplier. They are lower than values of money multiplier of M2, and even lower than multiplier of M1 since 2012. The most likely reasons for all trends are presented in the article.

Suggested Citation

  • Zbyněk Revenda, 2016. "Peněžní a úvěrové multiplikátory ve vybraných ekonomikách [Money and Credit Multipliers in Selected Economies]," Politická ekonomie, Prague University of Economics and Business, vol. 2016(5), pages 505-523.
    • Handle: RePEc:prg:jnlpol:v:2016:y:2016:i:5:id:1085:p:505-523
    DOI: 10.18267/j.polek.1085
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    References listed on IDEAS

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    1. William T. Gavin, 2009. "More money: understanding recent changes in the monetary base," Review, Federal Reserve Bank of St. Louis, vol. 91(Mar), pages 49-60.
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    Cited by:

    1. Zbyněk Revenda, 2018. "Krytí peněz v současnosti mýty, varianty a realita [Backing of Money at Present - Myths, Variants and Reality]," Politická ekonomie, Prague University of Economics and Business, vol. 2018(5), pages 633-651.

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    More about this item

    Keywords

    bank reserves; central bank; commercial bank; credit; monetary base; monetary aggregates; monetary policy; multiplier; quantitative easing; regulation; supervision;
    All these keywords.

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • G01 - Financial Economics - - General - - - Financial Crises

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