Keyword: loans
Banks and Non-Bank Finance (5/12/2010)
Banks may be able to expand money supply through fractional-reserve loans, but more and more loans and other financing are channeled through the non-bank finance sector.
Keywords: asset-backed securities, banks, bond market, capital markets, credit expansion, debt, debt market, fractional reserve system, loans, money expansion, money market, stock markets, venture capital
Liquidity Trap (6/17/2010)
Even with short-term interest rates close to zero, the US economy has failed to respond to cheap money because of anemic bank lending.
Keywords: inflation rate, interest rate spread, interest rates, lending, Liquidity trap, loans, negative interest rates, nominal interest rates, real interest rates, yield curve
Money multiplier (transcript) (11/18/2010)
In a fractional reserve banking system, the Central Bank needs to print only a fraction of the total money supply. This fraction depends on the average circulation needs of the banking customers. The rest of the money supply could be created by banks through loans.
Keywords: Central Bank, demand deposits, excess reserves, Federal Reserve, fractional reserves, fractional-reserve banking, loans, money, money multiplier, required reserves, reserves