What is monetary base, Macroeconomics

Assignment Help:

What is Monetary base

The monetary base is defined as the total value of all currency (banknotes and coins) outside the central bank and commercial banks' (net) reserves with the central bank. The monetary base is a debt in the balance sheet of the central bank. Its assets are mostly comprised of the foreign exchange and gold reserves and bonds issued by the national government. Currency inside the central bank has no value - it is comparable to an "I owe you" written by yourself and held by yourself.

 


Related Discussions:- What is monetary base

International trade, developing countries benefit through international tra...

developing countries benefit through international trade from developed countries

Calculate the average propensity, Question: Table below shows the recen...

Question: Table below shows the recent trends in terms of consumption. (a) (i) Explain what is meant by the term ‘marginal propensity to consume' (MPC) and the ‘averag

Difference between accounting profit and economic profit, What is the diffe...

What is the difference between accounting profit and economic profit? Accounting Profit: The accounting profit of a business is the revenue of business minus the explicit

Money market with inflation and constant money supply growth, Q. Money mark...

Q. Money market with inflation and constant money supply growth? If π M = π and π e = π, both IS- and LM-curve will be fixed.  Figure: The money market with inflatio

Solve for all of these questions., Christina Romer and Jared Bernstein in "...

Christina Romer and Jared Bernstein in "The Job Impact of the American Recovery and Reinvestment Plan" calibrated the impact of the proposed expansionary fiscal policy (we know it

Properties of indifference curve, Properties of indifference curve:   P...

Properties of indifference curve:   Property I: Higher indifference curve gives higher utility.      Explanation: Since all goods are non-satiated, larger consumpti

Determinants of money supply, Determinants of Money Supply The precedi...

Determinants of Money Supply The preceding sections concentrate on the processes through which the commercial banking system creates and destroys deposits by purchasing and se

Current macroeconomics problems, In order to encourage you to take interest...

In order to encourage you to take interests in the current affairs in business, and have more concerns about the real world problems (which is what economics is about), you are req

Toms price elasticity of demand, Two drivers --- Tom and Jerry --- each dri...

Two drivers --- Tom and Jerry --- each drives up to a gas station. Before looking at the price, each places an order. Tom says, "I'd like 10 gallons of gas." Jerry says, "I'd like

Derive saving - investment method, Derive saving- investment recognize in t...

Derive saving- investment recognize in the context of an open economy. From national income accounting shows that an enhance in taxes (whereas transfer unchanged) must imply a

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd