The Eurodollar Market and the Money Supply

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 This Ve sion is a ailable a : h ps://hdl.handle.ne /10419/292941 S anda d-Nu zungsbedingungen: Die Dokumen e au EconS o dü en zu eigenen wissenscha lichen Zwecken und zum P i a geb auch gespeiche und kopie we den. Sie dü en die Dokumen e nich ü ö en liche ode komme zielle Zwecke e iel äl igen, ö en lich auss ellen, ö en lich zugänglich machen, e eiben ode ande wei ig nu zen. So e n die Ve asse die Dokumen e un e Open-Con en -Lizenzen (insbesonde e CC-Lizenzen) zu Ve ügung ges ell haben soll en, gel en abweichend on diesen Nu zungsbedingungen die in de do genann en Lizenz gewäh en Nu zungs ech e. Te ms o use: Documen s in EconS o may be sa ed and copied o you pe sonal and schola ly pu poses. You a e no o copy documen s o public o comme cial pu poses, o exhibi he documen s publicly, o make hem publicly a ailable on he in e ne , o o dis ibu e o o he wise use he documen s in public. I he documen s ha e been made a ailable unde an Open Con en Licence (especially C ea i e Commons Licences), you may exe cise u he usage igh s as speci ied in he indica ed licence. h ps://c ea i ecommons.o g/licenses/by/4.0/ 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 ". OPEN ACCESS | Licensed unde CC BY 4.0 | h ps://c ea i ecommons.o g/abou /cclicenses/ DOI h ps://doi.o g/10.3790/ccm.15.4.538 | Gene a ed on 2023-01-16 12:48:18 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* OPEN ACCESS | Licensed unde CC BY 4.0 | h ps://c ea i ecommons.o g/abou /cclicenses/ DOI h ps://doi.o g/10.3790/ccm.15.4.538 | Gene a ed on 2023-01-16 12:48:18 540 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 OPEN ACCESS | Licensed unde CC BY 4.0 | h ps://c ea i ecommons.o g/abou /cclicenses/ DOI h ps://doi.o g/10.3790/ccm.15.4.538 | Gene a ed on 2023-01-16 12:48:18 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 OPEN ACCESS | Licensed unde CC BY 4.0 | h ps://c ea i ecommons.o g/abou /cclicenses/ DOI h ps://doi.o g/10.3790/ccm.15.4.538 | Gene a ed on 2023-01-16 12:48:18 542 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 ' OPEN ACCESS | Licensed unde CC BY 4.0 | h ps://c ea i ecommons.o g/abou /cclicenses/ DOI h ps://doi.o g/10.3790/ccm.15.4.538 | Gene a ed on 2023-01-16 12:48:18 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 OPEN ACCESS | Licensed unde CC BY 4.0 | h ps://c ea i ecommons.o g/abou /cclicenses/ DOI h ps://doi.o g/10.3790/ccm.15.4.538 | Gene a ed on 2023-01-16 12:48:18 544 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 OPEN ACCESS | Licensed unde CC BY 4.0 | h ps://c ea i ecommons.o g/abou /cclicenses/ DOI h ps://doi.o g/10.3790/ccm.15.4.538 | Gene a ed on 2023-01-16 12:48:18 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. OPEN ACCESS | Licensed unde CC BY 4.0 | h ps://c ea i ecommons.o g/abou /cclicenses/ DOI h ps://doi.o g/10.3790/ccm.15.4.538 | Gene a ed on 2023-01-16 12:48:18 552 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 OPEN ACCESS | Licensed unde CC BY 4.0 | h ps://c ea i ecommons.o g/abou /cclicenses/ DOI h ps://doi.o g/10.3790/ccm.15.4.538 | Gene a ed on 2023-01-16 12:48:18 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 OPEN ACCESS | Licensed unde CC BY 4.0 | h ps://c ea i ecommons.o g/abou /cclicenses/ 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. OPEN ACCESS | Licensed unde CC BY 4.0 | h ps://c ea i ecommons.o g/abou /cclicenses/ DOI h ps://doi.o g/10.3790/ccm.15.4.538 | Gene a ed on 2023-01-16 12:48:18 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 . OPEN ACCESS | Licensed unde CC BY 4.0 | h ps://c ea i ecommons.o g/abou /cclicenses/ DOI h ps://doi.o g/10.3790/ccm.15.4.538 | Gene a ed on 2023-01-16 12:48:18