Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/55264 
Full metadata record
DC FieldValueLanguage
dc.contributor.authorHanley, Brian P.en
dc.date.accessioned2012-01-24-
dc.date.accessioned2012-02-13T10:54:16Z-
dc.date.available2012-02-13T10:54:16Z-
dc.date.issued2012-
dc.identifier.citation|aEconomics: The Open-Access, Open-Assessment E-Journal|c1864-6042|v6|h2012-3|nKiel Institute for the World Economy (IfW)|lKiel|y2012|p1-25en
dc.identifier.pidoi:10.5018/economics-ejournal.ja.2012-3en
dc.identifier.urihttp://hdl.handle.net/10419/55264-
dc.description.abstractHistorically, the banking multiplier has been in a range of 4 to 100, with 25% to 1% reserve ratios at most layers of the banking system encompassing the majority of its range in recent centuries. Here it is shown that multipliers over 1 000 can occur from a new mechanism in banking. This new multiplier uses a default insurance note to insure an outstanding loan in order to return the value of the insured amount into capital. The economic impact of this invention is calculably greater than the original invention of reserve banking. The consequence of this lending invention is to render the existing money multiplier equations of reserve banking obsolete where it occurs. The equations describing this new multiplier do not converge. Each set of parameters for reserve percentage, nesting depth, etc. creates a unique logarithmic curve rather than approaching a limit. Thus it is necessary to show the behavior of this new equation by numerical methods. Understanding this new multiplier and associated issues is necessary for economic analyses of the Global Financial Crisis.en
dc.language.isoengen
dc.publisher|aKiel Institute for the World Economy (IfW) |cKielen
dc.subject.jelE17en
dc.subject.jelE20en
dc.subject.jelE51en
dc.subject.jelH56en
dc.subject.jelH63en
dc.subject.ddc330en
dc.subject.keywordGFCen
dc.subject.keywordglobal financial crisisen
dc.subject.keywordCDSen
dc.subject.keywordcredit default swapsen
dc.subject.keywordAIGen
dc.subject.keywordmoney multiplieren
dc.subject.keywordbanking multiplieren
dc.subject.keywordsynthetic capitalen
dc.subject.keywordloan insuranceen
dc.subject.stwGeldschöpfungen
dc.subject.stwBankenliquiditäten
dc.subject.stwBasel IIen
dc.subject.stwCredit Default Swapen
dc.titleRelease of the Kraken: A novel money multiplier equation's debut in 21st century banking-
dc.typeArticleen
dc.identifier.ppn684019345en
dc.rights.licensehttp://creativecommons.org/licenses/by-nc/2.0/de/deed.enen
dc.identifier.repecRePEc:zbw:ifweej:20123en
econstor.citation.journaltitleEconomics: The Open-Access, Open-Assessment E-Journalen
econstor.citation.issn1864-6042en
econstor.citation.volume6en
econstor.citation.issue2012-3en
econstor.citation.publisherKiel Institute for the World Economy (IfW)en
econstor.citation.publisherplaceKielen
econstor.citation.year2012en
econstor.citation.startpage1en
econstor.citation.endpage25en

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.