ECON 1009 Lecture Notes - Lecture 4: Monetary Base, Royal Numismatic Society, Private Bank

• School: University of Adelaide
• Department: Economics
• Course: ECON 1009
• Professor: Raul Barreto

Document Summary

Topic 3: the government and the central bank. Course learning outcome 3 is for students to be able to "identify the objectives of monetary policy, and to describe both orthodox and unconventional approaches used around the world to monetary policy implementation. " The difference between the monetary base and the money supply. The monetary base and the central bank balance sheet. Introduction to changes in the monetary base. In its widest meaning, in circulation means any federal reserve notes (frns) outside the federal reserve banks and. Monetary base = reserve balances + vault cash + cash in circulation any treasury-issued cash outside treasury. Economists prefer to use a narrower definition. Cash in circulation is any currency outside vaults of private banks. Vault cash , of the treasury, and of the fed- what is held by the public . Fed and treasury use the word currency to mean paper money only.