Angeh n, Beda
A icle
The Eu odolla Ma ke and he Money Supply
K edi und Kapi al
P o ided in Coope a ion wi h:
Duncke & Humblo , Be lin
Sugges ed Ci a ion: Angeh n, Beda (1982) : The Eu odolla Ma ke and he Money Supply, K edi und
Kapi al, ISSN 0023-4591, Duncke & Humblo , Be lin, Vol. 15, Iss. 4, pp. 538-555,
h ps://doi.o g/10.3790/ccm.15.4.538
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h ps://hdl.handle.ne /10419/292941
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The Eu odolla Ma ke 1 and he Money Supply
By Beda Angeh n, Zu ich
In oduc ion
As is usually he case when new economic phenomena eme ge, econo-
mis s ha e ied o explain he phenomenon o he Eu odolla ma ke
by sui ably adap ing he pe aining ex -book pa adigm. These e o s
esul ed in nume ous a emp s, bo h heo e ical and empi ical, o ana-
lyse he money supply implica ions o he Eu odolla ma ke in e ms
o he so-called "Eu odolla mul iplie ". Mo e ecen ly, howe e , he
Eu odolla mul iplie concep has been c i ized (Niehans/Hewson 1976,
Willms 1976, Swoboda 1978) and he money supply pa adigm has been
adap ed o he Eu odolla ma ke in a di e en and mo e meaning ul
way. This pape adds o his ecen de elopmen . I s main pu pose is o
b ing ou he money supply implica ions o he Eu odolla ma ke as
clea ly as possible add essing ques ions such as:
— Wha is he co ec analogy be ween domes ic money supply and
Eu odolla ma ke money supply? Wha is he ole o he Eu odolla
ma ke conce ning he o al mony supply and i s linkage o he do-
mes ic money supply?
— Wha a e he ele an beha io al pa ame e s and hei espec i e
oles?
— Wha a e he implica ions o pu suing mone a y policies? Ha e he
mone a y au ho i ies' capabili ies o con ol he mony supply been
impai ed? I so, wha measu es would be necessa y o imp o e hei
money supply con olling capabili ies?
— Is he eme gence o he Eu odolla ma ke in any way esponsible
o he excessi e money supply g ow h, i. e. o he wo ld-wide in-
la ion o he 1970s?
1 As in o he s udies, he e m "Eu odolla ma ke " he e is used o mean
he "Eu ocu ency ma ke ".
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The Eu odolla Ma ke and he Money Supply 539
In ying o answe hese ques ions, sec ion I b ie ly discusses he
sho comings o he concep o he Eu odolla mul iplie and hen poin s
ou he co ec analogies be ween a domes ic and a Eu odolla ma ke
money supply model. Subsequen ly i links he wo oge he o yield a
meaning ul, easily unde s andable money supply unc ion (which by
he way is e y much along he lines o Willms 1976). Sec ion II add es-
ses he ques ion o whe he he money supply ole o he Eu odolla
ma ke analysed in sec ion I also ob ains in a gene al equilib ium
amewo k in he Tobin-B aina d adi ion. Sec ion III summa izes he
conclusions.
I. The Role o he Eu odolla Ma ke in
a Th ee-S age Money Supply Model
1. The Model
1) E en hough he se ious de iciencies o he Eu odolla mul iplie
concep ha e inc easingly been ecognized (e. g. Willms 1976) — espe-
cially i s dis ega d o he in e ela ionship be ween domes ic demand
deposi s, Eu odolla demand deposi s and he o al money supply — he
Eu odolla mul iplie concep con inues o be widely used and he ue
na u e o he money supply ole o he Eu odolla ma ke is s ill some-
wha nebulous in many o he pe aining s udies. Fo example, one s ill
inds misunde s andings as o he analogies be ween he money supply
p ocess on he domes ic and on he Eu odolla ma ke espec i ely and
as o he in e ela ionship be wen he wo ma ke s. The e o e, a he
han jus se ing up a se o equa ions o desc ibe he money supply ole
o he Eu odolla ma ke , I will i s illus a e he analogies be ween
he money supply p ocess on he domes ic and on he Eu odolla ma ke
espec i ely by ansla ing a e y simple wo-s age money supply model
(cen al bank, banking sys em) in o a wo-s age Eu odolla ma ke money
supply model (Eu obanks, domes ic banking sys em). Wi h his back-
g ound, a h ee-s age money supply model capable o add essing he
issues aised in he in oduc ion is easily de i ed.
2) An ex emely simple domes ic wo-s age money supply model is
gi en by he ollowing h ee equa ions
(1) B = R + C
(2) = R/D
(3) c = C/D
34*
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540 Beda Angeh n
(we e B = Base, C = Cu ency, R = Rese es wi h cen al bank, and
D = demand deposi s). Equa ion (1) de ines he mone a y base, equa ion
(2) desc ibes he asse alloca ion by banks be ween base money and
ea ning asse s, and equa ion (3) cap u es he weal h alloca ion by non-
banks be ween base money and money issued by he banking sys em.
F om a balance-shee iew he mone a y base is de ined as he cen al
bank's o al liabili ies as composed o liabili ies bo h agains banks (R)
and agains non-banks (C). The banking sys em's money supply D is a
mul iple o i s ese es, i. e.
1 l
(4) D =
— •
R = — B
+ c
and he o al money supply is
1 + c
(5) M = D + C = B .
+ c
A change in non-banks' asse p e e ences c esul s in a change in he
banking sys em's money supply as well as in he o al money supply, as
illus a ed by equa ions (6) and (7)
dD 1
dM 1 -
(7) -dT'—( +WB<0-
3) How is his e y simplis ic wo-s age money supply model ans-
la ed in o a Eu odolla money supply model?
Fi s o all, in he con ex o a Eu odolla model, he wo s ages
"cen al bank" and "comme cial banks" co espond o he wo s ages
"domes ic banks" and "Eu obanks". In o he wo ds, he ole o he
banking sys em in a Eu odolla model is being played by he Eu obanks,
and he ole o he cen al bank by he domes ic banking sys em, e-
spec i ely. Thus, he liabili ies which se e as "base" o he Eu obanks'
money supply, BE (I call i "Eu obase"), a e he domes ic banks' liabili-
ies as composed o liabili ies agains Eu obanks, RE, and agains non-
banks, DH (whe e DH s ands o demand deposi s wi h home banks), i. e.
(1') BE = RE + D" .
Nex , he alloca ion o Eu obanks' asse s be ween "Eu obase money",
RE> and ea ning asse s may be desc ibed by an alloca ion pa ame e E
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The Eu odolla Ma ke and he Money Supply 541
(2') E = RV/DE
(whe e DE = demand deposi s wi h Eu obanks), while he alloca ion o
non-banks' asse s be ween demand deposi s wi h domes ic banks ("Eu o-
base money"), D , and demand deposi s wi h Eu obanks, DE, may be
desc ibed by an alloca ion pa ame e cE
(3') cE = DU/DE .
Then, o cou se, he Eu obanks' money supply likewise is a mul iple o
i s ese es, i. e.
(4')
DE
= RE = _ 1 _ Be
E E + cE
1 + cE
&)
ME
=
DH
+
DE
= —- —
BE
.
E CE
A change in non-banks' asse p e e ences cE esul s in a change in Eu o-
banks' money supply as well as in he o al money supply, as illus a ed
by equa ions (6') and (7')
<*DE 1
(6) ( , + c,)2 B»<0
dME 1 - ®
(7) "5P—- ( »,+ ey B£<°-
This ansla ion o a domes ic wo-s age money supply model in o a
Eu odolla money supply model, despi e i s simplici y, p o ides use ul
insigh s:
— Fi s , i demons a es he analogies be ween he money supply p o-
cess on he domes ic and on he Eu odolla ma ke . I illus a es e. g.
ha he equi alen o he mone a y base in a Eu odolla money
supply con ex (i. e. he "Eu obase"), is he o al o he domes ic
banks' liabili ies as agains Eu obanks, RE, and agains non-banks,
DH, o pu di e en ly, is he o al o non-banks' and Eu obanks' de-
posi s wi h he domes ic banking sys em. I is no as some imes as-
se ed, he domes ic money supply. Fu he , i illus a es ha he
c ucial alloca ion pa ame e s o desc ibing he money supply p o-
cess on he Eu odolla ma ke a e E and cE. While he ole o E has
been clea ly ecognized in he pe aining li e a u e, his is ue o a
much lesse ex en o he ole o cE.
— Second, i demons a es ha a shi in demand deposi s om do-
mes ic o Eu obanks has o be analysed exac ly he same way as a
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542 Beda Angeh n
shi om cash o demand deposi s, i. e. as a change in non-banks?
asse p e e ences. Pu di e en ly: a shi om deposi s wi h domes ic
banks o deposi s wi h Eu obanks in his con ex has he same (ex-
pansi e) e ec as a shi om cash o demand deposi s.
4) Based on his ansla ion o a domes ic wo-s age money supply
model in o a Eu odolla ma ke money supply model, a sui able h ee-
s age money supply is se up easily and i s wo king and implica ions
a e unde s ood eadily. To ha pu pose we s a wi h he wo equa ions
de ining he mone a y base and he money supply, espec i ely. While
he mone a y base de ini ion emains he same (equa ion (1)), he money
supply, in a h ee-s age scena io, encompasses h ee di e en monies:
cu ency, demand deposi s wi h domes ic banks, and demand deposi s
wi h Eu obanks. Thus, we ha e
(1) B=R + C
(8) M = C + + DE .
Because he e a e h ee asse s, he asse alloca ion beha io by non-
banks is desc ibed by wo alloca ion pa ame e s. We de ine one pa a-
me e as e lec ing he alloca ion o money be ween cu ency and de-
mand deposi s and he o he one as e lec ing he alloca ion o demand
deposi s be ween domes ic and Eu obanks, i. e.
(9) c = C/ (DH + DE)
(3') e = cE = D i/DE .
The alloca ion beha io by domes ic banks is desc ibed by wo ese e
a ios — he e a e wo di e en kinds o deposi s — i. e.
(10) R = HD" + DRE
(whe e 11 = ese e a io applicable o non-banks' deposi s and D =
ese e a io applicable o Eu obanks' deposi s).
And inally, he alloca ion beha io by Eu obanks again is desc ibed
by pa ame e * i. e.
(2') RE = E DE .
This se o equa ions cap u es he money supply ole o he Eu odolla
ma ke comp ehensi ely, yielding he money supply unc ion
(1 + c)
(1
+ e)
(U) M ~ n e +
*>
E + c
(1
+ e) B '
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The Eu odolla Ma ke and he Money Supply 543
This money supply equa ion is e y simila o Willms' (1976) and i
also does no di e e y much om he usual wo-s age money supply
unc ions. Wha can i ell us conce ning he money supply ole o he
Eu odolla ma ke , and how does i ela e o he issues aised in he
in oduc ion?
2. Meaning and Implica ions o he Model
1) Fi s , i answe s he ques ion which unde lies he whole Eu odolla
mul iplie li e a u e: how does a change in non-banks' asse p e e ences,
in he sense o a pe manen shi o dolla demand deposi s om do-
mes ic o Eu obanks, a ec he money supply? Di e en ia ing equa ion
(11), we ob ain
dM
®
E - n
he sign o which is, unless 11 is ex emely small (conside ably smalle
han bo h D and E), nega i e. Jus o ge an idea o how emo e he
possibili y o a posi i e sign is, assume ha D = E = .1. Then, H
would ha e o all sho o .01, o pu di e en ly, H would ha e o all
sho o bo h D and E by mo e han en imes o make equa ion (12)
yield a posi i e sign.
This possibili y may sa ely be excluded, and one may e en a gue ha
7/ is e y likely o exceed E, since Eu obanks a e no subjec o mini-
mum ese e equi emen s. (In ac , he inequali y E < n has some-
imes been made he cen e poin o a gue ha holding Eu odolla de-
posi s a he han domes ic deposi s aises he money supply.) Thus, we
ind ha he sign o equa ion (12) o all p ac ical pu poses is nega i e,
i. e. a pe manen shi o demand deposi s om domes ic o Eu obanks
inc eases he money supply.
2) Second, his model makes in ui i ely clea why a shi in asse p e-
e ences owa ds mo e Eu odolla deposi s inc eases he money supply.
As equa ion (12) shows, his expansi e e ec occu s i D E < E. The
a ionale is s aigh o wa d: Rese es held agains deposi s wi h do-
mes ic banks amoun o H D while ese es held agains deposi s held
wi h Eu obanks amoun o E D. Howe e , only ese es held by do-
mes ic banks, 77 D, a e held wi h he cen al bank and cons i u e he e-
o e a "leakage". Rese es held by Eu obanks, E D, because hey a e
held wi h domes ic banks, may be, and in ac a e, used as sou ce o he
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544 Beda Angêh n
domes ic banks' money supply. Only ha p opo ion o Eu obanks' e-
se es which domes ic banks hold as ese es wi h he cen al bank, i. e.
D E ac ually "leaks" om he sys em. Thus, he "e ec i e" ese e
a io in he sense o ese es being held wi h he cen al bank amoun s
o H o deposi s held wi h domes ic banks, and o D E o deposi s
held wi h Eu obanks. The e o e, he esul o equa ion (12) acco ding
o which a shi in pa ame e e inc eases he money supply i D E < /7,
is in ui i ely e y easily unde s ood. This e bal easoning also illus a-
es why he a gumen some imes encoun e ed ha he expansi e na u e
o he Eu odolla ma ke s ems om i s no being subjec o minimum
ese e equi emen s (which means E < H) comple ely misses he poin .
E en wi h E > H he Eu odolla ma ke is e y likely o be o expan-
si e na u e because e en wi h E > /7, i is e y likely ha E D < H.
3) Thi d, his model illus a es clea ly wha he c ucial pa ame e s
a e in he con ex o he money supply ole o he Eu odolla ma ke .
They a e pa ame e c, which is a ela ionship desc ibing how non-banks
alloca e hei deposi s be ween domes ic and Eu obanks, and pa ame e
E, which desc ibes he alloca ion beha io o Eu obanks conce ning
hei dolla liabili ies. These wo a iables comp ehensi ely cap u e he
money supply ole o he Eu odolla ma ke and he ex en o which
he Eu odolla ma ke con ibu es o an inc eased money supply. O he
a iables like e. g. he balance o paymen s o he Uni ed S a es a e i e-
le an in his con ex . Only i he balance o paymen s de ici we e o
a ec ei he pa ame e e o pa ame e E, i would ha e any bea ing on
he Eu odolla ma ke 's money supply.
4) Fou h, his model illus a es ha o unde s and he money supply
ole o he Eu odolla ma ke , one has o hink o he c ucial beha io
pa ame e s as "equilib ium" pa ame e s, in he sense o "desi ed" o
"a e age" magni udes, i. e. magni udes which a e esponsi e o a ia-
ions in economic a iables (especially in e es a es). Only hen has
equa ion (11) a meaning ul in e p e a ion and is mo e han jus a de i-
ni ional ela ionship, and only hen does one clea ly di e en ia e be-
ween economic (equilib ium) e ec s and me e bookkeeping ans-
ac ions. The ailu e o clea ly d aw his dis inc ion was one o he se-
ious de iciencies o he adi ional Eu odolla mul iplie s udies whe e
much o he wo k was di ec ed owa ds acing ou all concei able
ansac ions ollowing a shi o deposi s om domes ic o Eu obanks,
a he han ying o explain wha happens "on a e age". Also his
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The Eu odolla Ma ke and he Money Supply 545
ailu e ce ainly con ibu ed o he con usion su ounding he money
supply ole o he Eu odolla ma ke . To ake an example, he dis-
cussion o which p opo ion o ou s anding Eu odolla deposi s a e "p i-
ma y" and which a e "de i a i e" clea ly e lec s he hinking wi hin
he bounds o T-accoun s. In an equilib ium con ex , he e is no way o
meaning ully di o ce p ima y om de i a i e deposi s.
5) Fi h, his model illus a es ha while in ac he eme gence o he
Eu odolla ma ke is e y likely o ha e caused he U.S. money supply
o ise, his e ec does no mean a all ha he Eu odolla ma ke is
able o c ea e money beyond he con ol o he mone a y au ho i ies.
Ra he , he money supply is s ill a unc ion o he mone a y base
(equa ion (11)) and hus absolu ely con ollable by he cen al bank. The
only e ec o he Eu odolla ma ke is o inc ease he mone a y mul-
iplie , bu a highe mul iplie pe se does no impai he money con-
olling capabili ies o he cen al bank. In iew o his esul , p esen
e o s by he cen al banks o he G oup o Ten o ge he Eu odolla
ma ke unde hei con ol o he sake o imp o ing hei capabili ies
o check he money supply ise, a e unnecessa y and e lec he cen al
banks' lack o unde s anding he Eu odolla ma ke 's money supply ole.
6) Finally, he model illus a es ha e o s by some cen al banks
( o emos he U.S. mone a y au ho i ies) o p essu e a majo i y o cen-
al banks in o subjec ing Eu odolla deposi s o minimum ese e e-
qui emen s a e ill-concei ed on he g ounds ha such an imposi ion
would no necessa ily elimina e he expansi e na u e o he Eu odolla
ma ke . This is eadily seen by inspec ion o equa ion (12). To impose
he same minimum ese e equi emen s on Eu odolla deposi s as a e
applied o domes ic deposi s means ha E = H so ha
dM » h - " n
(< D
- 1)
Thus, a pe manen shi o dolla deposi s o Eu obanks s ill inc eases
he U.S. money supply. Only i Eu obanks we e equi ed o hold hei
ese es wi h he espec i e cen al banks, a he han wi h U.S. com-
me cial banks, would he imposi ion o minimum ese e equi emen s
elimina e he expansi e na u e o he Eu odolla ma ke .
7) In concluding he discussion o his money supply model, we may
no e ha he model, while being e y use ul, is also se e ely limi ed, as
i comple ely dis ega ds he p ice mechanism on he inancial ma ke s.
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552 Beda Angeh n
expansi e e ec . Despi e his ese a ion, howe e , he analysis o he
gene al equilib ium con i ms and suppo s he p incipal esul o he
h ee-s age money supply model, so ha he conclusions d awn he e
con inue o be alid; howe e , hey ha e o be in e p e ed wi h cau ion.
3) The main weakness o his gene al equilib ium model is ha i
implies a demand de e mined mone a y base. One migh wonde
whe he he inding a i ed a in his model is in any way condi ional
upon his speci ic ea u e.
To demons a e ha his is no he case, we now assume he mone a y
base o be exogenously gi en and a he same ime d op he demand
unc ion o cash. These modi ica ions a ec equa ions (41) and (42) bu
do no a ec equa ions (39) and (40), so ha he ollowing model (which
is essen ially he same as in Niehans/Hewson 1976) ob ains:
(39) I J (iL, ieL) + RD (iL, ieL) = D» (iL, ieL,
./?)
+ R? (iL, ieL)
(40) L? (iL, ieL) + Re (k,
iCL)
= D? (iL, ieL,
oc)
(44) M-D» (iL, ieL) - D? (iL, ieL) +
RO
ieL) = B
To ally di e en ia ing and sol ing o dM yields
D,3 (- L2 - L,2) (- DCi - Dx + R- D ,3 (Lej +
L<i ~ D*i>{L2 " ~ R*2> ~ (Li + Rl ~ Dl) +
+ Li) (- D2 - D,2)
+ -
The denomina o is he same as in equa ion (43) and he nume a o
again has bo h posi i e and nega i e e ms. Assuming he same o de
o magni ude condi ions as be o e o hold, equa ion (45) is domina ed
by he e m — Rx (L2 + Le2)De3 which again is nega i e so ha dM/dcx
again has a posi i e sign. As be o e a change in non-banks' asse p e-
e ences owa ds mo e Eu odolla deposi s is e y likely o esul in
an inc ease o he money supply bu again his inc ease is likely o be
e y small. This inding illus a es ha he expansi e na u e o he
Eu odolla ma ke which was es ablished in a h ee-s age money supply
model and was ound o p e ail in a gene al equilib ium amewo k
is no condi ional upon he speci ic o mula ion o he employed model.
(45) dM
da= -dß
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The Eu odolla Ma ke and he Money Supply 553
III. Conclusions
The conclusions o his pape may be summa ized as ollows:
1) A shi in non-banks' asse p e e ences in a o o Eu odolla de-
posi s is e y likely o esul in an inc ease, hough small, o he money
supply. The c ucial ea u e causing his expansi e e ec is he ac ha
Eu obanks hold hei ese es wi h domes ic banks ( a he han wi h he
cen al bank) which in u n hold only a small p opo ion o hese de-
posi s as ese es wi h he cen al bank.
2) The inding ha he Eu odolla ma ke s is o expansi e na u e does
no mean, howe e , ha he Eu odolla ma ke may a bi a ily, i. e.
beyond he mone a y au ho i ies' con ol, c ea e money. Ra he , he
mone a y base is s ill he "base" o he money supply, i. e. he money
supply (inclusi e o Eu odolla deposi s) is s ill a di ec unc ion o he
mone a y base. The only e ec o he Eu odolla ma ke is o a ec he
mone a y mul iplie . This means ha om a money supply iew he e
is no need wha soe e o es ic o o con ol he Eu odolla ma ke .
3) The iew is widesp ead (no leas among cen al banks) ha he
Eu odolla ma ke should be subjec ed o minimum ese e equi e-
men s and o he o ms o egula ion. The p esen analysis has illus a ed
ha such ese e equi emen s would only elimina e he expansi e
na u e o he Eu odolla ma ke , i he Eu obanks we e simul aneously
equi ed o hold all hei ese es wi h he cen al bank a he han
wi h he domes ic banks. Bu his analysis has also illus a ed ha
om a money supply pe spec i e he e is no need o imposing mini-
mum ese e equi emen s in o Eu odolla deposi s.
Re e ences
Clendenning, W. (1971): "Eu odolla s and C edi C ea ion", In e na ional
Cu ency Re iew, 3, 1971, 12 - 19. — F eedman, C. (1977 a): "A Model o he
Eu odolla ma ke ", Jou nal o Mone a y Economics, Ap il, 1977, 139 - 162. —
F eedman, C. (1977 b): "The Eu odolla Ma ke : A Re iew o i e Recen
S udies", Jou nal o Mone a y Economics, Oc obe , 1977, 389 - 408. — F ied-
man, M. (1969): "The Eu odolla Ma ke : Some Fi s P inciples", Mo gan
Gua an y Su ey, Oc obe , 1969, 4- 14. — Fuh mann, W. (1979): „Das hei-
mische Geld- und K edi angebo eine Eu owäh ung", K edi und Kapi al,
He 1, 1979, 56 - 72. — Hewson, J. and Sakakiba a, E. (1974): "The Eu o-
dolla Deposi Mul iplie : A Po olio App oach", IMF S a Pape s, 21 July,
1974, 307-328. — Hewson, J. and Sakakiba a, E. (1975): The Eu ocu ency
Ma ke s and Thei Implica ions: A "New" View o In e na ional Mone a y
35 K edi und Kapi al 4/1982
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DOI h ps://doi.o g/10.3790/ccm.15.4.538 | Gene a ed on 2023-01-16 12:48:18
554 Beda Angeh n
P oblems and Mone a y Re o m, Lexing on D.C. Hea h, 1975. — Klops ock,
F. (1968): "The Eu odolla Ma ke : Some Un esol ed Issues", Essays in
In e na ional Finance, No. 65, P ince on Uni e si y, 1968. — Klops ock, F.
(1970): "Mone a y C ea ion in he Eu odolla Ma ke — A No e on P o esso
F iedman's Views", Fede al Rese e Bank o New Yo k, Janua y, 1970,
12-15. — K asnicka, J. G. (1969): "Eu odolla s — An Impo an Sou ce o
Funds o Ame ican Banks", Business Condi ions, Fede al Rese e Bank o
Chicago, June, 1969, 9 - 20. — Lee, JB. L. (1973): "The Eu odolla Mul iplie ",
Jou nal o Finance, Sep embe , 1973, 867 -874. — Machlup, F. (1970): "Eu o-
dolla C ea ion: A Mys e y S o y", Rep in s in In e na ional Finance, No. 16,
P ince on Uni e si y, 1970. — Makin, J. H. (1972): "Demand and Supply
Func ions o Eu odolla Deposi s: An Empi ical S udy", Re iew o Eco-
nomics and S a is ics, 54, No embe , 1972, 381 -391. — Maye , H. W. (1970):
"Some Theo e ical P oblems Rela ing o he Eu odolla Ma ke ", Essays in
In e na ional Finance, No. 79, P ince on Uni e si y, Feb ua y, 1970. — Nie-
hans, J. and Hewson, J. (1976): "The Eu odolla Ma ke and Mone a y
Theo y", Jou nal o Money, C edi and Banking, Feb ua y, 1976, 1 - 27. —
Rich, G. (1972): "A Theo e ical and Empi ical Analysis o he Eu odolla
Ma ke ", Jou nal o Money, C edi and Banking, Augus , 1972, 615 - 635. —
Swoboda, A. (1968): "The Eu odolla Ma ke : An In e p e a ion", Essays in
In e na ional Finance, 64, P ince on Uni e si y, Feb ua y, 1968. — Swoboda,
A. (1973): "Eu odolla s and he Wo ld Money Supply", in: Eu ope and he
E olu ion o he In e na ional Mone a y Sys em (ed. by A. Swoboda), 1973,
149 - 168. — Swoboda, A. (1978): "Gold, Dolla s, Eu o-dolla s, and he Wo ld
Money S ock unde Fixed Exchange Ra es", Ame ican Economic Re iew,
1978, 625 - 642. — Tobin, J. and B aina d, W. C. (1963): "Financial In e -
media ies and he E ec i eness o Mone a y Con ols", Ame ican Economic
Re iew, Supplemen , 53, May, 1963, 383-400. — Tobin, J. (1969): "A Gene al
Equilib ium App oach o Mone a y Theo y", Jou nal o Money, C edi and
Banking, Feb ua y, 1969, 15 -29. — Willms, M. (1976): "Money-C ea ion in
he Eu o-Cu ency Ma ke ", Wel wi scha liches A chi , Band 112, He 2,
1976, 201 - 230.
Zusammen assung
De Eu odolla ma k und das Geldangebo
Im o liegenden Bei ag wi d die geldangebo s heo e ische Rolle des
Eu odolla ma k es analysie . Zug undegeleg wi d dabei zue s ein en -
sp echend e wei e es Geldangebo smodell und anschließend ein ela i
allgemeines Po oliomodell. Die Analyse zeig , daß de Eu odolla ma k
g undsä zlich expansi en Cha ak e ha . Gleichzei ig wi d kla , welche öko-
nomischen Zusammenhänge im Rahmen dieses expansi en E ek es eine en -
scheidende Rolle spielen. Geldpoli isch mach die Analyse deu lich, daß o z
des expansi en Cha ak e s des Eu odolla ma k es die Kon olle übe das
Geldangebo den Zen albanken keineswegs en gli en is , und daß Mindes -
ese e o sch i en ü Eu odolla deposi en den expansi en Cha ak e des
Eu odolla ma k es nich no wendige weise eliminie en wü den.
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The Eu odolla Ma ke and he Money Supply 555
Summa y
The Eu odolla Ma ke and he Money Supply
The p esen a icle analyses he ole o he Eu odolla ma ke om he
s andpoin o money supply heo y. Fi s , a sui ably ex ended money supply
model is se up as a basis and hen a ela i ely gene al po olio model. The
analysis shows ha undamen ally he Eu odolla ma ke is o an expansi e
na u e. A he same ime, i becomes clea wha economic in e ela ionships
play a decisi e ole in ha expansi e e ec . Wi h ega d o mone a y policy,
he analysis makes i clea ha o all he expansi e na u e o he Eu o-
dolla ma ke he cen al banks ha e los con ol o e he money supply
and ha minimum ese e equi emen s o Eu odolla deposi s would no
necessa ily elimina e he expansi e cha ac e o he Eu odolla ma ke .
Résumé
Le ma ché de l'eu odolla e l'o e moné ai e
La p ésen e con ibu ion analyse le ôle héo ique de l'o e moné ai e
du ma ché de l'eu odolla . On s'es à ce e e se i d'abo d d'un modèle
co espondan d'o e moné ai e éla gi e ensui e d'un modèle de po e euille
ela i emen géné al. L'analyse démon e que le ma ché de l'eu odolla a
ondamen alemen un ca ac è e expansi . L'on cla i ie simul anémen les
ela ions économiques qui jouen un ôle dé e minan dans le cad e de ce
e e d'expansion. En ma iè e de poli ique moné ai e, l'analyse é abli que
malg é le ca ac è e expansi du ma ché de l'eu odolla , le con ôle de l'o e
de monnaie n'a nullemen échappé aux banques cen ales e que des p e-
sc ip ions de ése es minimales pou les dépô s en eu odolla n'élimine aien
pas o cémen le ca ac è e expansi du ma ché de l'eu odolla .
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DOI h ps://doi.o g/10.3790/ccm.15.4.538 | Gene a ed on 2023-01-16 12:48:18