Editing Monetary base (section)

{{Short description|Measure of money supply}}
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[[File:Euro monetary base.png|thumb|Euro monetary base]]

In [[economics]], the '''monetary base''' (also '''base money''', '''money base''', '''high-powered money''', '''reserve money''', '''outside money''', '''central bank money''' or, in the [[United Kingdom|UK]], '''narrow money''') in a country is the total amount of money created by the central bank. This includes:

* the total [[currency]] circulating in the public, 
* plus the currency that is physically held in the [[bank vault|vaults]] of [[commercial bank]]s,
* plus the [[commercial bank|commercial banks']] [[bank reserves|reserves]]<ref>See, e.g., U.S. Federal Reserve System regulations at 12 C.F.R. section 204.5(a)(1) and 12 C.F.R. section 204.2.</ref> held in the [[central bank]].<ref>See, e.g., U.S. Federal Reserve System regulation at 12 C.F.R. section 204.5(a)(1)(i).</ref>

The monetary base should not be confused with the [[money supply]], which consists of the total [[currency]] circulating in the public plus certain types of non-bank deposits with [[commercial bank]]s.