Velocity of Pledged Collateral

Singh, M. (2010). Velocity of Pledged Collateral: Analysis and Implications.

Type

Unclassified

Intellectual base

Unclassified

Year

2010

Link

no authoritative link yet

Cited by

1 citation across 1 artifact.

Domain-specific

• Money Multiplier
  • In required-reserve regimes (the US before 2008, reserve-constrained systems elsewhere) the multiplier links base money to M1/M0 or M2/M0, sets the deposit ceiling at 1/r, and frames open-market and QE operations as base injections propagating through the redeposit chain. Leakage and aggregate analysis — currency drain and excess-reserve holding (conspicuous in the US after 2008 once the Fed paid interest on reserves) are read as named additive subtractions that pull the realized multiplier below 1/r, diagnosing a falling M1/M0 without re-deriving the redeposit dynamics. Endogenous-money / regime analysis — the concept's sharpest in-domain use is the binding-constraint distinction: in an interest-rate-targeting regime (Bank of England 2014, BIS) loans create deposits first and the multiplier is only an ex-post accounting ratio, so the analysis pivots to loan demand and bank capital as the real constraint. Repo and securities-lending markets — re-hypothecation chains and securities-lending velocity are a genuine mechanistic habitat: a haircut plays the reserve fraction, collateral re-use plays the redeposit, and the same geometric expansion governs how far one unit of collateral stretches

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