monetary base

(redirected from Base money)

Monetary base

Sum of the currency held by the public and reserves held by financial institutions with the Federal Reserve Banks. This is the monetary aggregate that the Federal Reserve has control over through its monetary policy. Also called High Powered Money because the effect of changes in monetary base on money supply is magnified by the money multiplier.

Narrow Money

A measure of the money supply used by the various central banks that includes only currency in circulation and very near money instruments. In the Federal Reserve System, narrow money includes all physical currency and deposits in checking accounts as well as Negotiable Orders Withdrawal accounts. It does not include savings accounts, certificates of deposit, or money market accounts. This is called narrow money because it applies the most restrictive definition of money. It is also called the money base. See also: M1, M0.

monetary base

or

high-powered money

that part of the MONEY SUPPLY that is directly

under the control of a country's CENTRAL BANK. In the UK this consists of CURRENCY (BANK NOTES and COINS) in circulation plus commercial banks’ TILL MONEY and their operational balances at the BANK OF ENGLAND - equal to the ‘M0‘ definition of money. See MONEY SUPPLY DEFINITIONS, MONETARY POLICY.

References in periodicals archive ?
But it abandoned its base money target and instead set a "yield curve control" under which it will buy long-term government bonds to keep 10-year bond yields around current levels of zero percent.
The Japanese central bank announced a doubling of its purchases of exchange-traded funds but maintained its base money target at $775 billion.
The bank decided to keep its current monetary policy, of increasing base money at an annual pace of around JPY80tn, unchanged.
Dubai Islamic Bank Pakistan Limited (DIBPL), a leading Islamic Bank in Pakistan and Western Union, a leader in money transfer and global payment services today announced the launch of international account base money transfer services to Pakistan, setting up new standards of convenience for Western Union beneficiaries in Pakistan.
The Bank of Japan's policy board voted to maintain its key policy of increasing base money at an annual pace of about 80 trillion yen (650 billion dollars) through asset purchases, dpa quoted the bank as saying in a statement issued after a two-day meeting.
So long as a dominant role for base money in exchange exists, using it to provide the unit of account remains advantageous and is likely to outweigh any mooted benefits of separation.
However, while the Fed will not be adding base money as it has been doing to the financial system what is there now will not be taken away before the Fed believes the expansion under way is more fully established.
in this program, Base Money is defined as the sum of Base Money
A wider definition would incorporate the profits of the central bank arising from the issue of all base money, calculated as the difference between what the bank pays on its liabilities (cash and reserves) and what it receives on assets (government overdrafts and treasury bills, etc.
The new RAM recognizes that, since the Monetary Control Act of 1980, an increasing proportion of depository institutions have not significantly changed their demand for base money (vault cash and deposits at Federal Reserve Banks) relative to transactions deposits following changes in statutory reserve requirements.
They also demand base money in the form of bank reserves in order to meet reserve requirements.
BOJ announced on Friday a doubling of its purchases of exchange traded funds but maintained its base money target at $775 billion and kept the status quo for other asset-buying operations.