Monetary base: Difference between revisions
Content deleted Content added
John Quiggin (talk | contribs) cat |
No edit summary |
||
| Line 1: | Line 1: | ||
In [[economics]], the '''monetary base''', or the '''money base''' (often called '''narrow money''' in the [[United Kingdom|UK]]) is a term relating to the volume of money in the economy, or [[money supply]]. The monetary base comprises only of [[currency]] ([[banknote]]s and [[coin]]s) and [[commercial bank]]s' [[bank reserves|reserves]] with the [[central bank]]. As such, it is a narrow definition of money supply, consisting of only the most [[Market liquidity|liquid]] forms of [[money]]. Wider definitions of the money supply include the public's bank [[deposit]]s and are therefore larger in volume and encompass money of a lower liquidity. |
In [[economics]], the '''monetary base''', or the '''money base''' (often called '''narrow money''' in the [[United Kingdom|UK]]) is a term relating to the volume of money in the [[economy]], or [[money supply]]. The monetary base comprises only of [[currency]] ([[banknote]]s and [[coin]]s) and [[commercial bank]]s' [[bank reserves|reserves]] with the [[central bank]]. As such, it is a narrow definition of money supply, consisting of only the most [[Market liquidity|liquid]] forms of [[money]]. Wider definitions of the money supply include the public's bank [[deposit]]s and are therefore larger in volume and encompass money of a lower liquidity. |
||
==External links== |
==External links== |
||
Revision as of 04:20, 13 March 2007
In economics, the monetary base, or the money base (often called narrow money in the UK) is a term relating to the volume of money in the economy, or money supply. The monetary base comprises only of currency (banknotes and coins) and commercial banks' reserves with the central bank. As such, it is a narrow definition of money supply, consisting of only the most liquid forms of money. Wider definitions of the money supply include the public's bank deposits and are therefore larger in volume and encompass money of a lower liquidity.