UCL ECON7003 Money and Banking Topic 6a The Money Multiplier Stylized history of banking. Deposit creation. Actors in the Money Supply process. Multiple deposit creation.
e.g. Certificates of Deposit (CDs). To meet fluctuations in liquidity needs. ... Express period 2 budget constraint i.t.o. C1: C1 = 1 p. p = C1 - 1 ...
UCL ECON7003 Money and Banking Topic 6. Monetary policy and the two traditions in macroeconomics. Introduction to Part II of the module: Money and monetary policy.
Draw in funds at lower cost on the liability side. Put them to more profitable ... Subsequent backsliding corset' deposits at BoE to restrain growth of MS. ...