Money base

Money base

Composed of currency and coins outside the banking system plus liabilities to the deposit money banks.

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.
References in periodicals archive ?
The Commerce Department's leading indicators and the real money base edged lower while the spread between long and short-term interest rates remained unchanged," said David L.
The Money Base software is a comprehensive database of about 3,000 funding sources of venture capital.
Expected to retail for about $300, the Money Base software can be obtained for a limited time directly from Business Publishers for the price of $149.
So far QE has not caused a massive increase in the money supply that matters for inflation; the money base has indeed risen sharply, but the broad money supply has not.
Quantitative easing has indeed caused a surge in one narrow money aggregate: the money base, which is the sum of currency plus bank reserves held at the central bank.
21) As a first approximation, the 'money multiplier' relating the money supply to the money base would be expected to be on the order of 1/R, or about 10 to 1.
A high interest rate will discourage the public from holding currency, shrinking the money base and raising the money multiplier.
The policy instrument is the money base instead of the FFR.
However, many researchers suggest that the McCallum money base targeting rule has undesirable stabilization properties.
The author replaces the money base as the policy instrument with the FFR by appealing to empirical evidence that base velocity is a stable function of the FFR.
Either way, large parts of its voter and money base will be alienated.
Steve Ogden, manager of Hancocks, in Liverpool, said: "Vesty Business Park has provided a real value for money base for our Merseyside operation.