PPT Slide

What Determines the Supply of Money?

Review of Money Creation

Goal of todayís class

Three Important Ratios

Developing the Money Multiplier Formula

Developing the Money Multiplier Formula (continued)

What the Money Multiplier Formula Means

Who Affects the Money Supply?

Example 1

Answer to Example 1

Example 1 (continued)

Answers to Example 1 (continued)

Excess Reserves Ratio

Discount Loans and Interest Spread

Factors Determining Money Supply

Money Supply

Determinants of the Money Supply

Lessons learned from the graphs

Lessons learned (cont.)

Deposits at Failed Banks: 1929ñ33

{ER/D}, {C/D}: 1929ñ33

Money Supply and Monetary Base: 1929ñ33

M2 Money Multiplier

Factors Determining M2

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