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The Money Multiplier and Other Measures of Financial Sector Performance

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  • Zinn, Jesse Aaron

    (Clayton State University)

Abstract

This paper develops and discusses several ratios designed to assess financial intermediation overall, as well as the two steps necessary for financial intermediation: attracting funds and lending them. We find that the money multiplier is, in typical cases, positively related to all of these ratios, suggesting that it also can be interpreted as a measure of how well a financial sector is performing in its role as intermediary between savers and borrowers.

Suggested Citation

  • Zinn, Jesse Aaron, 2022. "The Money Multiplier and Other Measures of Financial Sector Performance," SocArXiv zusqa, Center for Open Science.
    • Handle: RePEc:osf:socarx:zusqa
    DOI: 10.31219/osf.io/zusqa
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