The money multiplier is not calculated

The money multiplier is not calculated for M0, since this unit is completely included in the monetary base and therefore not multiplikuetsya. The money multiplier shows the connection between the money supply to the monetary base, as will change the money supply when the monetary base. With a combined issue of money in the first place increases the monetary base (issue of central banks), and then - the money supply (issuance of commercial banks), in an amount corresponding to the multiplier. It is believed that the money multiplier effect on required reserves of the bank deposits at the central bank and its maximum is theoretically determined by the inverse of the average rate of mandatory reserves, which is approved by the central bank. In this case the multiplier determines the upper limit of animation - the maximum ability of the banking system to expand its money (credits) in economics at the current rate of redundancy. If the banking system does not exist, then rotate only cash. Then the multiplier effect is absent, and the multiplier is 1, which is a lower limit value of the money multiplier. The maximum value of the money multiplier as the inverse of the average rate redundancy is often used for control and comparison with the actual value of the multiplier as the ratio of mean values ​​(for the relevant period) of the money supply in the monetary base, which allows to determine the intrinsic nature of the multiplier effect and the factors of change . Topic: The mechanism of emission