| Issue |
E3S Web Conf.
Volume 250, 2021
1st Conference on Traditional and Renewable Energy Sources: Perspectives and Paradigms for the 21st Century (TRESP 2021)
|
|
|---|---|---|
| Article Number | 06005 | |
| Number of page(s) | 8 | |
| Section | Legal Regulation of the Digital Economy and Digital Relations on Energy Markets | |
| DOI | https://doi.org/10.1051/e3sconf/202125006005 | |
| Published online | 09 April 2021 | |
Soft monetary policy in a sustainable economy as a rigid game
1
Department of Trade and Finance, Faculty of Economics and Management, Czech University of Life Sciences Prague, Kamýcká 129, 165 00 Prague, Czech Republic
2
Faculty of Humanities, Charles University in Prague. Pátkova 2137/5, 182 00 Prague, Czech Republic
* Corresponding author: cabelkova@pef.czu.cz
Over the past decade, central banks in a majority of developed countries injected astonishing amounts of money into national and international economies in the hope of helping real sectors and with worries of high inflation. Neither of these came true. This paper describes the reasons for such unusual dynamics using a case of the sustainable economy. The three factors considered include the increased propensity to save, the decreased money multiplier, and substantial growth in the financial markets. The mathematical model studies the effect of the new money created on the real sector via the effect on real consumption depending on the share of the new money received by the less and more affluent part of the population. The results suggest, that the higher is the proportion of new money allocated to the poorer part of the society, the higher is the effect of overall money on the real sector if the propensity to consume in this part of the population is held constant.
© The Authors, published by EDP Sciences, 2021
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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