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  2. Multiplier (economics) - Wikipedia

    en.wikipedia.org/wiki/Multiplier_(economics)

    Commercial banks create money, especially under the fractional-reserve banking system used throughout the world. In this system, money is created whenever a bank gives out a new loan. This is because the loan, when drawn on and spent, mostly finishes up as a deposit back in the banking system and is counted as part of money supply.

  3. Money multiplier - Wikipedia

    en.wikipedia.org/wiki/Money_multiplier

    As explained above, according to the monetary multiplier theory money creation in a fractional-reserve banking system occurs when a given reserve is lent out by a bank, then deposited at a bank (possibly different), which is then lent out again, the process repeating [2] and the ultimate result being a geometric series.

  4. Monetary economics - Wikipedia

    en.wikipedia.org/wiki/Monetary_economics

    Monetary economics is the branch of economics that studies the different theories of money: it provides a framework for analyzing money and considers its functions (such as medium of exchange, store of value, and unit of account), and it considers how money can gain acceptance purely because of its convenience as a public good. [1]

  5. Currency appreciation and depreciation - Wikipedia

    en.wikipedia.org/wiki/Currency_appreciation_and...

    Currency depreciation is the loss of value of a country's currency with respect to one or more foreign reference currencies, typically in a floating exchange rate system in which no official currency value is maintained. Currency appreciation in the same context is an increase in the value of the currency.

  6. Monetary system - Wikipedia

    en.wikipedia.org/wiki/Monetary_system

    The alternative to a commodity money system is fiat money which is defined by a central bank and government law as legal tender even if it has no intrinsic value. Originally fiat money was paper currency or base metal coinage, but in modern economies it mainly exists as data such as bank balances and records of credit or debit card purchases, [3] and the fraction that exists as notes and coins ...

  7. Modern monetary theory - Wikipedia

    en.wikipedia.org/wiki/Modern_Monetary_Theory

    Cheap imports may also cause the failure of local firms providing similar goods at higher prices, and hence unemployment, but MMT proponents label that consideration as a subjective value-based one, rather than an economic-based one: It is up to a nation to decide whether it values the benefit of cheaper imports more than it values employment ...

  8. Monetary inflation - Wikipedia

    en.wikipedia.org/wiki/Monetary_inflation

    Monetary inflation is a sustained increase in the money supply of a country (or currency area). Depending on many factors, especially public expectations, the fundamental state and development of the economy, and the transmission mechanism, it is likely to result in price inflation, which is usually just called "inflation", which is a rise in the general level of prices of goods and services.

  9. Keynesian economics - Wikipedia

    en.wikipedia.org/wiki/Keynesian_economics

    The significance he attributed to it is one of the innovative features of his work, and was influential on the politically hostile monetarist school. Money supply comes into play through the liquidity preference function, which is the demand function that corresponds to money supply. It specifies the amount of money people will seek to hold ...