High-powered money (100 years of stability)
When I studied economics, the term ‘high-powered money’ was often used synonymously with the monetary base, which consists of currency plus bank deposits at the Fed. This asset was called “high-powered” for three reasons: 1. It is determined exogenously by the monetary authority. 2. It is non-interest-bearing. 3. It is the medium of account. As […]
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