Portfolio investment

Like direct investments, portfolio investments are a form of international capital flows, which is reflected in the balance of payments. Portfolio investment is a group of balance of payments items showing the relationship between residents and non-residents in connection with the sale of financial instruments that do not give the right to control the object […]

Money supply model. Money multiplier

The supply of money (Ms) includes cash (C) outside the banking system and deposits (D), which economic agents can use for transactions if necessary (in fact, this is the Ml aggregate) Ms = C+D The modern banking system is a system with partial reserve coverage: only a part of their deposits banks keep in the […]