Determinants of money multipliers. - Free Online Library

In the present day world of fairly well-developed banking systemswhere money stock in an economy is jointly determined by the policies ofthe Central Bank, the scheduled banks and the non-bank public, thedetermination of money stock is an important variable in the formulation of an appropriate monetary policy. In Pakistan however very frequent andsignificant changes in money supply during the fiscal year suggeststrong arbitrariness in the formulation and implementation of themonetary policy.

There are various approaches to the process of money stock determination, one approach is through money multipliers. Changes in money multipliers reflect the portfolio decisions of the comm