How Required Reserve Ratio Affects Distribution and Velocity of Money Export

@misc{citeulike:268301, abstract = {In this paper the dependence of wealth distribution and the velocity of money on the required reserve ratio is examined based on a random transfer model of money and computer simulations. A fractional reserve banking system is introduced to the model where money creation can be achieved by bank loans and the monetary aggregate is determined by the monetary base and the required reserve ratio. It is shown that monetary wealth follows asymmetric Laplace distribution and latency time of money follows exponential distribution. The expression of monetary wealth distribution and that of the velocity of money in terms of the required reserve ratio are presented in a good agreement with simulation results.}, archivePrefix = {arXiv}, author = {Xi, Ning and Ding, Ning and Wang, Yougui}, citeulike-article-id = {268301}, citeulike-linkout-0 = {http://arxiv.org/abs/physics/0507160}, citeulike-linkout-1 = {http://arxiv.org/pdf/physics/0507160}, day = {21}, eprint = {physics/0507160}, keywords = {econophysics, financial-networks, markets}, month = {Jul}, posted-at = {2005-07-29 17:14:58}, priority = {2}, title = {How Required Reserve Ratio Affects Distribution and Velocity of Money}, url = {http://arxiv.org/abs/physics/0507160}, year = {2005} }

TY - ELEC ID - citeulike:268301 L3 - citeulike-article-id:268301 N2 - In this paper the dependence of wealth distribution and the velocity of money on the required reserve ratio is examined based on a random transfer model of money and computer simulations. A fractional reserve banking system is introduced to the model where money creation can be achieved by bank loans and the monetary aggregate is determined by the monetary base and the required reserve ratio. It is shown that monetary wealth follows asymmetric Laplace distribution and latency time of money follows exponential distribution. The expression of monetary wealth distribution and that of the velocity of money in terms of the required reserve ratio are presented in a good agreement with simulation results. TI - How Required Reserve Ratio Affects Distribution and Velocity of Money KW - econophysics KW - financial-networks KW - markets AU - Xi, Ning AU - Ding, Ning AU - Wang, Yougui PY - 2005/Jul/21/ UR - http://arxiv.org/abs/physics/0507160 ER -