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Money multiplier
(redirected from Money creation)

   Also found in: Wikipedia 0.01 sec.
Money multiplier
Under the fractional reserve banking system, a unit of cash injected into the system by a central bank increases as it propagates through the banking system. Thus an increase in the monetary base has a magnified effect on the money supply and the multiplicative effect is represented by the money multiplier.


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The cebr on Monday predicted that the BoE would eventually increase its extraordinary policy of money creation, known as quantitative easing (QE), by an extra 75 billion pounds.
AaAa The statement says money creation has slowed down as the M3 aggregate grew at an annual rate of only 6.
Bernanke seems to believe that money creation is the long-term solution to all economic problems.
 
 
 
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