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Monetary base

Money issued by the central bank: cash in circulation plus banks' balances held at the regulator.

How to read the number

It is the raw material for the money supply — by lending, banks turn the base into a much larger volume of deposits.

When the metric lies

A growing base does not automatically mean growing credit: if banks prefer to sit on reserves, the money stays on account at the central bank.

Also known as: reserve money

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