Sentence examples for of base money from inspiring English sources

Suppose that technology eliminates both kinds of base money.

Central banks can control short-term interest rates because they are monopoly suppliers of "base money"—currency, plus deposits by banks at the central bank.

How should we think about the relation between this activity and the direct issuance of base money by an arm of the state, such as a state-owned central bank?

Any new injections of base money by the central bank are simply absorbed by this speculative demand with little or no effect on short or long-term interest rates.

In the major economies, monetary policy is approaching the limits of what they can do.He adds that central banks have two levers; the level of rates and the amount of base money (banking liquidity).

The total quantity of money at any time depends on several factors, including the stock of base money, the public's preference regarding the relative amounts of money it wishes to hold as currency and as deposits, and the preferences of banks regarding the ratio they wish to maintain between their reserves and their deposits.

If the ratio of broad to base money were constant, such fears would be warranted.

The ratio of broad to base money is known as the "money multiplier".The banks are the conduit between central-bank policy and the wider economy.

While commercial banks remain the most important sources of convenient substitutes for base money, they are no longer exclusive suppliers of money substitutes.

Just as is true of any currency board system today, the quantity of money (base money) is variable.

The profligate state also relies increasingly on financial assistance from a privileged central bank with a legal monopoly on the creation of fiat "base money" (an inconvertible paper currency plus bank reserves), a bank which loses its "independence" and increasingly serves as the state's favored investment bank.