How excessive endogenous money supply can contribute to global financial crises

نویسندگان

چکیده

Financial crises have become a challenge for sustainable growth, given the frequency and intensity of crisis shocks their destructive consequences in recent decades. The paper aims to study how endogenously generated excess money supply can contribute global financial crises. creation is examined from perspective Quantity Theory Money (QTM) endogenous money, namely Horizontalism, Structuralism, Modern Theory. Given that prices are not flexible short term, increased volatility market prevents short-term ready balance between output. overall result accommodation be unpredictable if monetary authorities commercial banks do pool interests, demand becomes extremely high. correlation output allowed distinguishing neutral countries extra liquid assets potential trigger excessive volatility. Monitoring dynamics M3 GDP showed before significant periods 1997–1998, 2007–2008, 2019–2020, growth was more than 8%. established critical level confirms contribution created

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ژورنال

عنوان ژورنال: Banks and Bank Systems

سال: 2021

ISSN: ['1816-7403', '1991-7074']

DOI: https://doi.org/10.21511/bbs.16(3).2021.03