Money multiplier formula

Japanese: 貨幣乗数式 - かへいじょうすうしき
Money multiplier formula

M / H = C + D / R + C = 1 + c / r + c , or M = H [1 + c / r + c ]. This is called the money multiplier or credit multiplier. In other words, the smaller the reserve requirement ratio r and the cash-to-deposit ratio c , and the larger the high-powered money H , the larger the money supply M.

*Some of the terminology explanations that mention the "money multiplier formula" are listed below.

Source | Heibonsha World Encyclopedia 2nd Edition | Information

Japanese:

… M/HCD/RC=1+c/rcすなわちMH[1+c/rc]となる。これは貨幣乗数式あるいは信用乗数式とよばれる。すなわち,預金準備率rや現金・預金比率cが小さいほど,またハイパワード・マネーHが大きいほど,マネー・サプライMは大きくなる。…

※「貨幣乗数式」について言及している用語解説の一部を掲載しています。

出典|株式会社平凡社世界大百科事典 第2版について | 情報

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