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Banks and the supply of money
| Note : 
RésuméThe narrowest definition of money is the monetary base (or high powered money). It consists of notes and coins.
The monetary base forms a stock of highly liquid potential "reserves", on the basis of which commercial banks can create broad money.
Table of contents:
- Creation of broad money with a banking system
- Money definitions in the Eurozone
- Money definitions in the USA
- Banks' balance sheets
- How are banks' balance sheets involved when the money supply changes?
- A Central bank's balance sheet
- An increase in the general public's demand for notes and coins
- A government budget surplus
- A government budget deficit
- An open market operation; the central bank buys government bonds
- The determination of money supply
- The demand for money
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