Money Multiplier from Reserve Ratio

Calculate the theoretical money multiplier as 1/reserve ratio and estimate broad money creation from an initial monetary base injection.

 
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Physical Constants Reference
ConstantSymbolValue
Speed of lightc2.99792458×10⁸
Planck's constanth6.62607015×10⁻³‴
Boltzmann constant1.380649×10⁻²³
Avogadro's numberNₐ6.02214076×10²³
Gravitational constantG6.6743×10⁻¹¹
Gas constantR8.31446
Elementary chargee1.602176634×10⁻¹⁹
Electron massmₑ9.1093837015×10⁻³¹
Proton massmₚ1.67262192369×10⁻²⁷
Fine-structure constantα7.2973525693×10⁻³
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How It Works

Calculate the theoretical money multiplier as 1/reserve ratio and estimate broad money creation from an initial monetary base injection

Each component has a specific meaning:

  • Initial monetary base injection — The initial monetary base injection recorded for the patient or scenario being assessed.

Note: Interpret the money multiplier result against the clinical thresholds and context described above.

How to Use

Enter the initial monetary base injection for the patient or scenario you are assessing. Calculate the theoretical money multiplier as 1/reserve ratio and estimate broad money creation from an initial monetary base injection. Use the money multiplier result to inform your clinical assessment.

Frequently Asked Questions