Das heimische Geld- und Kreditangebot einer Euro-Währung

Abstract

The Domestic Money and Credit Supply of a Euro-Currency

This article shows that the money- and credit supply of a country, the currency of which is traded on the Euro-market (Euro-currency) may be analysed by means of a two-tier multiple-expansion system (“three-stagesystem”). As in the case of domestic banks which are relieved of the (legal) minimum reserve requirements, the domestic central bank directly influences only a part of the total credit supply in this currency or of the tendering banking system. The other part of the supply-side of this credit market is subject to the control of foreign central banks. The existence of the Euro-market strengthens the role of the behavioral multiplier-ratios for the (domestic) creation of credits, specially the direct interest elasticity of the domestic credit supply and, consequently, the influence of non-banks and private banks on the volume of money and credit respectively. A correspondingly connected weakening in the direct effectivity of monetary instruments (e.g. the level of minimum reserve requirements) can only partly be eliminated by means of specific actions regarding supply structure (e.g. variation within the structure of the minimum reserve requirements for deposits by residents and non-residents). Economic stabilization measures should therefore be accompanied by the application of additional instruments (e. g. special reserve-requirements for credits provided by foreigners to non-banks i. e. cash deposits (Bardepot), institutionalised direct influences of foreign central banks with regard to minimum reserve requirements for so-called foreign currency accounts, open market operations on the Euro-market etc.).