monetary base
(redirected from High-powered money)Also found in: Wikipedia.
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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
monetary base
orhigh-powered money
that part of the MONEY SUPPLY that is directlyunder 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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005