Macroeconomic model reference

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.

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Money Multiplier graph: parameters, shocks, and readouts

Use the Money Multiplier graph to move parameters, inspect shocks, and read the model outputs that change.

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