monetary base

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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


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 ?
The narrow monetary base, that is, the monetary base excluding time deposits of second-tier banks in the National Bank, increased by 7.
9bn in December 2017, the monetary base in manat started to decline, falling 6.
In consequence, the monetary base is determined domestically by a central bank.
The UAE monetary base shrunk five per cent in January to Dh278.
The reduction in these three components of the monetary base overshadowed the 1.
TOKYO, March 3 (KUNA) -- Japan's monetary base surged 36.
Meanwhile since the beginning of the year the monetary base expanded by 31.
According to the governor of the Central Bank of Iran (CBI), the country's monetary base has grown by 1.
Economists refer to interventions that alter a nation's monetary base as nonsterilized.
The country's monetary base at the end of September stood at 185.
We do so by looking at monetary policy innovations to the monetary base in an estimated vector autoregression (VAR) to see how monetary policy shocks impact the entire term structure of U.
Between 2003 and 2009, the PBoC neutralized nearly 40 percent of the impact of these reserve inflows on the monetary base by selling so-called "sterilization bonds" to banks.