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The Eurodollar Market and the Money Supply

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Angehrn, B. The Eurodollar Market and the Money Supply. Credit and Capital Markets – Kredit und Kapital, 15(4), 538-555. https://doi.org/10.3790/ccm.15.4.538
Angehrn, Beda "The Eurodollar Market and the Money Supply" Credit and Capital Markets – Kredit und Kapital 15.4, 1982, 538-555. https://doi.org/10.3790/ccm.15.4.538
Angehrn, Beda (1982): The Eurodollar Market and the Money Supply, in: Credit and Capital Markets – Kredit und Kapital, vol. 15, iss. 4, 538-555, [online] https://doi.org/10.3790/ccm.15.4.538

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The Eurodollar Market and the Money Supply

Angehrn, Beda

Credit and Capital Markets – Kredit und Kapital, Vol. 15 (1982), Iss. 4 : pp. 538–555

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Angehrn, Beda

References

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Abstract

The Eurodollar Market and the Money Supply

The present article analyses the role of the Eurodollar market from the standpoint of money supply theory. First, a suitably extended money supply model is set up as a basis and then a relatively general portfolio model. The analysis shows that fundamentally the Eurodollar market is of an expansive nature. At the same time, it becomes clear what economic interrelationships play a decisive role in that expansive effect. With regard to monetary policy, the analysis makes it clear that for all the expansive nature of the Eurodollar market the central banks have lost control over the money supply and that minimum reserve requirements for Eurodollar deposits would not necessarily eliminate the expansive character of the Eurodollar market.