How can bank behaviour and the Bank of Canadas behaviour cause money supply growth to be procyclical

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How can bank behaviour and the Bank of Canada’s behaviour cause money supply growth to be procyclical (rising in booms and falling in recessions)?

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The Economics of Money Banking and Financial Markets

ISBN: 978-0321785701

5th Canadian edition

Authors: Frederic S. Mishkin, Apostolos Serletis

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Question Posted: Nov 09, 2018 12:18 PM

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How can bank behaviour and the Bank of Canadas behaviour cause money supply growth to be procyclical

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Bank behavior can lead to procyclical money growth because when interest ra...View the full answer

The Economics of Money Banking and Financial Markets

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