Textbook monetary theory holds that increasing the money supply leads to higher inflation. However, the Federal Reserve has tripled the monetary base since 2008 without inflation surging. With ...

What is the multiplier effect? The multiplier effect is the term used to describe the impact that changes in monetary supply can have on economic activity. When an individual, government or company ...

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Here’s an elegant solution to the problem of the US’s missing money multiplier. Just declare it doesn’t exist.

This is a very important and hotly debated question. In my recent post (March 2010), I already discussed how the Federal Reserve’s unprecedented actions to respond to the financial crisis caused an ...

If you are teaching or taking an introductory macroeconomics course this fall, you will, at some point, encounter the money multiplier. The multipier posits that there is a stable ratio between M2, ...

The multiplier effect is the term used to describe the impact that changes in monetary supply can have on economic activity. When an individual, government or company spends money it has a ...

What is best about it is that the benefits are not limited to any one activity In the last few decades, the UAE has reshaped itself. An economy once characterised by its oil is now creating a ...