Release of the Kraken: A Novel Money Multiplier Equation’s Debut in 21st Century Banking

@article{Hanley2014ReleaseOT,
  title={Release of the Kraken: A Novel Money Multiplier Equation’s Debut in 21st Century Banking},
  author={B. Hanley},
  journal={Economics},
  year={2014},
  volume={6}
}
  • B. Hanley
  • Published 2014
  • Computer Science, Economics
  • Economics
Abstract Historically, the banking multiplier has been in a range of 4 to 100, with 25% to 1% reserve ratios at most layers of the banking system encompassing the majority of its range in recent centuries. Here it is shown that multipliers over 1 000 can occur from a new mechanism in banking. This new multiplier uses a default insurance note to insure an outstanding loan in order to return the value of the insured amount into capital. The economic impact of this invention is calculably greater… Expand

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