…and only the multiplier effect of that spending actually happening “expanded” anything. (Or, more accurately, some businesses did not fail so rapidly and the cost of some services did not…

…money and/or a multiplier (“trickle-down”) effect from increased spending.** Put your money in a Mutual Fund, it’s Invested. Buy a stock, it’s invested. Put it in a Demand Deposit Account…

…be different for intermediaries (financial institutions) than wealth-creators (businesses). And because “excess reserves” are money issued by the government which is inflationary because of the multiplier effect of money—which, of…

…liquidity trap there would be an additional advantage of public spending (giving a multiplier greater than 1). However, the debt will still be with us when we exit the liquidity…

…accounting identity (S=I) and the money multiplier. As a ballpark, you should see that in GDP trending annually about $200-300B below the previous trend. ($1T in reserves => ca. $5T…

…w’ and (b) that the multiplier in most cases is 1, and (c) the constant (e.g., signing bonus) can be assumed without loss of generality to be 0, (3b) AcceptOffer…

…get inflation if there is no money multiplier in play. So long as the banks are just holding the cash, worries about monetary policy leading to inflation are at best…

…discuss where All That Money Has Gone; suffice to say, it’s not exactly producing a Multiplier Effect.) But the writer saves the best for last. And lastly, on a more…

…collapse in nominal spending in late 2008 and early 2009 as changes in the monetary base and the money multiplier largely offset each other. … (And a little later) Unfortunately,…

…of this bodes well for the concern about multiplier effects and money velocity. Yet here we are all these plans being put into action to get people spending ’cause that’s…