Apakah kesan yang mungkin disebabkan oleh COVID-19 terhadap pengganda wang?

What are the possible effects of COVID-19 on money multipliers?

The multiplier effect refers to the proportional amount of increase, or decrease, in final income that results from an injection, or withdrawal, of spending.

Economists and bankers often look at a multiplier effect from the perspective of banking and money supply. This multiplier is called the money supply multiplier or just the money multiplier. The money multiplier involves the reserve requirement set by the Board of Governors of the Federal Reserve System and it varies based on the total amount of liabilities held by a particular depository institution. The most recent Federal Reserve reserve requirements prior to the Covid-19 pandemic mandated that institutions with more than $127.5 million have reserves of 10%. This changed as the Fed responded to the Covid-19 pandemic by eliminating these requirements to free up liquidity

In general, there are multiple levels of money supply across the entire U.S. economy. The most familiar ones to the general public are:

• The first level, dubbed M1, refers to all of the physical currency in circulation within an economy.
• The next level, called M2, adds the balances of short-term deposit accounts for a summation.

When a customer makes a deposit into a short-term deposit account, the banking institution can lend one minus the reserve requirement to someone else. While the original depositor maintains ownership of their initial deposit, the funds created through lending are generated based on those funds. If a second borrower subsequently deposits funds received from the lending institution, this raises the value of money supply even though no additional physical currency actually exists to support the new amount.