# Financial accelerator

- Canonical URL: https://www.gerhardmerk.de/financial-accelerator
- Post ID: 588056
- Modified: 2023-07-25T21:01:00+00:00
- Language: en

## Definition

If the central bank expands the money supply, then under certain circumstances - above all: there are underutilized capacities - this can lead to a revival of the economy as a whole. - The assumption that - slumps in the real economy such as a sudden stop in exports (resulting in a war among trading partners or supply routes) amplify - because this also affects the financial market, - which in turn causes repercussions on economic activity (the idea that adverse shocks to the economy may be amplified by worsening financial market conditions and could thus initiate a depressive tumble). - See accelerator, financial, monetary policy, domino effect, stimulus, market impact, money-matters theorem, government debt. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 1.1.1