central bank money

Indirectly, they also measure a country's amount of central bank money created and lent out beyond what is needed for domestic circulation.

At this point in the relending model, Bank A now only has $20 of central bank money on its books.

Thus, in the first period, commercial bank money was almost exactly central bank money times the multiplier, but this relationship broke down from September 2008.

They argue that price inflation is only a symptom of previous monetary inflation caused by central bank money creation.

Payment transactions are settled one by one on a continuous basis in central bank money with immediate finality.

Most often, it measures the maximum amount of commercial bank money that can be created by a given unit of central bank money.

The value of commercial bank money is based on the fact that it can be exchanged freely at a bank for central bank money.

Secondly, such a system could help to increase demand for central bank money, thereby creating and increasing a structural liquidity shortage in the money market.

He uses three new variables "nominal domestic demand," "central bank money" and "error term with the standard characteristics" to give a more suitable model.

Fractional-reserve banking determines the relationship between the amount of "central bank money" in the official money supply statistics and the total money supply.

Each successive bank involved in this process creates new commercial bank money on a diminishing portion of the original deposit of central bank money.

The commercial banks can use what are known as "refinancing instruments" to cover their needs for central bank money through the Bundesbank and the ECB.

The FOMC decides on open market operations, including the desired levels of central bank money or the desired federal funds market rate.

However, what I do believe will seem unpalatable to some : banks should not be getting a penny of taxpayer money or sovereign guarantees or central bank money.

In monetary economics, private money (also called commercial bank money) is the opposite of government money (also called central bank money, high powered money).

In monetary economics, a money multiplier is one of various closely related ratios of commercial bank money to central bank money under a fractional-reserve banking system.

If banks instead lend less than the maximum, accumulating excess reserves, then commercial bank money will be less than central bank money times the theoretical multiplier.

It also shows how central bank money is used to create commercial bank money from an initial deposit of $100 of central bank money.

In the money supply statistics, central bank money is MB while the commercial bank money is divided up into the M1-M3 components.

In reality the sequence works more in the opposite direction with banks taking first their credit decisions and then looking for the necessary funding and reserves of central bank money."

The minimum reserve is one such key monetary instrument; it is able to steady the banks' demand for central bank money and thus to prevent highly volatile short-term interest rates.

If banks lend out close to the maximum allowed by their reserves, then the inequality becomes an approximate equality, and commercial bank money is central bank money times the multiplier.

From a depositor's perspective, commercial bank money is equivalent to central bank money - it is impossible to tell the two forms of money apart unless a bank run occurs.

In the strictest versions of free banking, however, there either is no role at all for a central bank, or the supply of central bank money is supposed to be permanently "frozen."

Unlike mainstream monetary theory, it considers credit money created by commercial banks as primary (at least in modern economies), rather than derived from central bank money - credit money drives the monetary system.