Template-Type: ReDIF-Paper 1.0
Author-Name: Ryan Niladri Banerjee
Author-X-Name-First: Ryan Niladri
Author-X-Name-Last: Banerjee
Author-Name: Jon Frost
Author-X-Name-First: Jon
Author-X-Name-Last: Frost
Author-Name: Michael Chui
Author-X-Name-First: Michael
Author-X-Name-Last: Chui
Author-Name: Jose Maria Vidal Pastor
Author-X-Name-First: Jose Maria
Author-X-Name-Last: Vidal Pastor
Title: Elasticity in the monetary system
Abstract: Today's two-tier monetary system performs a crucial role: providing money in an elastic way through overdrafts and lines of credit in the face of uncertainty and unforeseen shocks.During the Covid-19 pandemic, such elasticity allowed central banks and commercial banks to provide a discretionary increase in the money supply to manage global shocks.In recent months, banks have expanded their loan commitments to sectors impacted by US tariffs in anticipation of client demand for working capital.
Length: 8 pages
Creation-Date: 2025-06-04
File-URL: https://www.bis.org/publ/bisbull101.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/bisbull101.htm
File-Format: text/html
Number: 101
Handle: RePEc:bis:bisblt:101