Tight monetary policy could boost money stock, unconventional policies have mixed effects.
The article explores how different types of monetary policies affect the money stock in the banking industry. They used a model that considers both conventional and unconventional policies. The findings show that tight monetary policy can actually increase the money stock, especially with more banks involved. Quantitative easing doesn't impact money stocks much, while qualitative easing's effect is unclear but similar to interest rate changes. Negative interest rates have a complex effect on the industry.