Money creation model fails to explain Germany's monetary policy impact
The article discusses how money and monetary policy affect the economy in Germany. It compares two views on how money is created: endogeneity and exogeneity. The researchers use a model to show how money is created by banks and how it impacts the economy. They analyze data from 1975 to 1998 and find that neither the traditional money multiplier approach nor their model fully explains the changes in the money supply during that time.