How banks create 息自音 L money
How banks create money
What is money ? Notes Currenc现金 oins C? ent deposits(活期存款) other deposits with banks(银行的其它存款) M3=C +D
What is money? • Notes • Coins • Current deposits （活期存款） • other deposits with banks（银行的其它存款） Currency(现金) M3 = C + D
A world without any banks C=$100 D=SO The supply of money is $100
A world without any banks The supply of money is $100. • C= $100 • D= $0
The first bank ASSETS(资 LIABILITIES(负) Reserves $100 Deposits $100 C= SO D=S100 M=S100
The First Bank Reserves $100 Deposits $100 ASSETS(资产) LIABILITIES（负债） C= $ 0 D= $100 M= $100
Summary If banks hold all deposits in reserve. banks do not influence the supply of money. 如果银行持有100%准备金,银行不 影响货币的供给。 O,△
If banks hold all deposits in reserve, banks do not influence the supply of money. 如果银行持有100%准备金，银行不 影响货币的供给。 Summary