Define the monopoly of central banks, Macroeconomics

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Define the monopoly of Central banks

The central bank has a monopoly on issuing currency, it is in complete control of the monetary base. In section 7.4.2 we will describe exactly how they change the monetary base. However, the central bank does not completely control the money supply. This is due to the second component of the money supply - bank deposits - which it cannot control. Fortunately, it has methods of influencing the total money supply

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