Timeline for Does an increase in the money supply increase or decrease interest rates?
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Nov 24, 2023 at 9:50 | comment | added | Jamie Smith | "All else being equal, banks have more money to lend. This increases the available supply of loanable funds". The loanable funds model of bank lending is a myth FYI in case you haven't read that since 2017. Banks cannot and do not lend out reserves. See this paper by the Bank of England. | |
Mar 12, 2017 at 16:58 | history | answered | 123 | CC BY-SA 3.0 |