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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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    References listed on IDEAS

    as
    1. Jesse Aaron Zinn, 2018. "An alternative framework for a textbook analysis of the money multiplier," Economics Bulletin, AccessEcon, vol. 38(4), pages 2111-2115.
    2. Samuel Bentolila & Marcel Jansen & Gabriel Jiménez, 2018. "When Credit Dries Up: Job Losses in the Great Recession," Journal of the European Economic Association, European Economic Association, vol. 16(3), pages 650-695.
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    6. Milton Friedman & Anna J. Schwartz, 1963. "A Monetary History of the United States, 1867–1960," NBER Books, National Bureau of Economic Research, Inc, number frie63-1, February.
    7. Goodhart, C. A. E., 2017. "The determination of the money supply: flexibility versus control," LSE Research Online Documents on Economics 84209, London School of Economics and Political Science, LSE Library.
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