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Posts Tagged ‘multiplier’

The Fed Is Responsible for the Crash in the Money Multiplier … And the Failure of the Economy to Recover

Greg Mankiw noted in January 2009:Econ prof Bill Seyfried of Rollins College emails me:Here’s an interesting fact that you may not have seen yet. The M1 money multiplier just slipped below 1. So each $1 increase in reserves (monetary base) results in t…