monetary base


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.

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 ?
The UAE monetary base expanded 6.00 percent to an 11-month high of Dh371.6 billion ($101.1billion) by end of November from Dh350.6 billion by the end of October, a media report said.
The bank also said that in May 2018, the monetary base decreased by 0.3 percent to 4.7 trillion tenges.
The monetary base grew by 7.3% in 2017 and by the end of December amounted to 5,538.7 bn tenge.
Summary: 
After a recent high of AZN 7.9bn in December 2017, the monetary base in manat started to decline, falling 6.7% m/m in January 2017 and 4.7% m/m in February 2017
In consequence, the monetary base is determined domestically by a central bank.
The UAE monetary base shrunk five per cent in January to Dh278.9 billion from Dh292.5 billion in December.
The monetary base decreased owing to a drop in the currency in circulation, which went down 4.1 per cent, banks' excess reserves by 24.4 per cent and certificates of deposits held by banks by 6.4 per cent.
TOKYO, March 3 (KUNA) -- Japan's monetary base surged 36.2 percent from a year earlier to JPY 278.87 trillion (USD 2.333 trillion) at the end of February, marking an all-time high for seven months in a row, the central bank said Tuesday.
Meanwhile since the beginning of the year the monetary base expanded by 31.8 percent.
According to the governor of the Central Bank of Iran (CBI), the country's monetary base has grown by 1.8% between March and December 2013.
Economists refer to interventions that alter a nation's monetary base as nonsterilized.
Japan's monetary base increased 46.1 percent in September from a year earlier to 181.70 trillion yen, marking a record high for the seventh month in a row, the Bank of Japan said Wednesday, as it continued pumping money into the financial system under its ultra easy monetary policy.