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    Tobin - Commercial Banks As Creators of Money

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    Jung Zorndike
    The document discusses the role of commercial banks in the money supply process. Commercial banks accept deposits and make loans, which expands the money supply through the money creation process as banks are allowed to hold only a fraction of deposits as reserves. The money supply is influenced by the actions of commercial banks in their lending activities and the required reserve ratio set by the Federal Reserve.

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    Tobin - Commercial Banks As Creators of Money

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    Jung Zorndike
    59 views12 pages
    The document discusses the role of commercial banks in the money supply process. Commercial banks accept deposits and make loans, which expands the money supply through the money creation process as banks are allowed to hold only a fraction of deposits as reserves. The money supply is influenced by the actions of commercial banks in their lending activities and the required reserve ratio set by the Federal Reserve.

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    Tobin - Commercial Banks as creators of money

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    Tobin - Commercial Banks as Creators of Money

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    The document discusses the role of commercial banks in the money supply process. Commercial banks accept deposits and make loans, which expands the money supply through the money creation process as banks are allowed to hold only a fraction of deposits as reserves. The money supply is influenced by the actions of commercial banks in their lending activities and the required reserve ratio set by the Federal Reserve.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    59 views12 pages

    Tobin - Commercial Banks As Creators of Money

    Uploaded by

    Jung Zorndike
    The document discusses the role of commercial banks in the money supply process. Commercial banks accept deposits and make loans, which expands the money supply through the money creation process as banks are allowed to hold only a fraction of deposits as reserves. The money supply is influenced by the actions of commercial banks in their lending activities and the required reserve ratio set by the Federal Reserve.

    Copyright:

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    Download as PDF, TXT or read online from Scribd
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    of 12

    Cowles Foundation Paper 205 Reprinted from Dean Carson (ed.

    ), Banking and Monetary Studies, for the Comptroller of the Currency, U.S. Treasury, Richard D. Irwin, 1963

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