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Macro by Mark

Global Economic Data, Empirical Models, and Macro Theory
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Public data from government agencies and multilateral statistical releases, anchored in official sources

© 2026 Mark Jayson Nation

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Theory-Based Models

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Money Multiplier
Model

The money multiplier model traces how the banking system expands the monetary base into a larger money supply. The multiplier m = (1 + cr)/(cr + rr) depends on the currency-deposit ratio and the reserve-deposit ratio, so M = m * MB.

How much broad money does the banking system create from a given monetary base?

Composition

MMM
Money supply

Broad money supply (currency in circulation plus d...

mmm
Money multiplier

The ratio M/MB, determined by the reserve ratio an...

MBMBMB
Monetary base

High-powered money: currency held by the public pl...

GraphProofCompare

Short Run Equilibrium

Money supply

560.0

Money multiplier

2.80

Monetary base

200.0