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Pastimes : All Clowns Must Be Destroyed
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To: pater tenebrarum who wrote (15658)3/9/2000 6:58:00 AM
From: Oblomov  Read Replies (1) of 42523
 
Heinz, I may have confused it with the velocity of money. The "money multiplier" is simply the ratio of the monetary base to M1,

M1 = m * (MB)

Note that all open market operations are conducted in MB, so added liquidity in MB "multiples" to result in more M1.
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