| During financial crisis,The Federal Reserve input enormous amount of monetary base,butmoney supply growth is substantially low,it encourages us to probe into the behavior of its moneymultiplier.This paper focuses on the multiplier,through data analysis from January2005to October2009as samples,we probe into related factors,including reserve ratio,cash ratio,and time depositratio,and analyze how and why they have been changing.From the statistical characteristics,there isreason to suspect that excess reserve plays an overwhelming part in explaining the contraction ofmultiplier.This finding provides a justified motivation to go insight the links between moneymultiplier and excess reserves.The increase of monetary base injected by Fed,has not led to theeffective increase in money supply. |
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