he adjusted monetary base is an index that measures the effects on a central bank’s balance sheet of its open market operations, discount window lending, unsterilized foreign exchange market intervention, and changes in statutory reserve requirements. Such an index is important because the long-run path of a monetary economy’s price level is primarily determined by the path of the central bank’...

Bahrain is a very small oil-exporting country in the Middle East with a fixed exchange rate against the US dollar and has no restricton capital flows. Because its economy evolves around the oil sector, its economy is thought to be vulnerable to oil price movements. It is feared that the recent oil price hike would feed from foreign assets to monetary base and money supply to inflation. Empirica...

This paper reviews the monetary policy in Japan during the “great recession.” The paper focuses especially on the conduct of monetary policy when the ZIRP (zero interest rate policy) was in place. The nominal call rate was virtually zero, but we find the monetary policy was not that expansionary in some other dimensions. We examine the long-run relation between the real M2+CD and the real GDP, ...

Since 2007, many monetary authorities have drastically changed its monetary policy. They began an aggressive struggle with the biggest economic crisis since the Great Depression. Despite the substantial decline in Central banks interest rates in US and EMU and despite the sharp easining of monetary policy in many other countries, the cost of credit to both households and businesses has generall...

The ultimate goal of monetary policy is to achieve price stability and high output. In this regard, central banks usually change the interest rate, liquidity, and money base in order to apply monetary policies. The John B. Taylor rule is one of the rules known in the transmission of monetary policy.[1] Based on this rule and given the output gap and inflation gap, the central bank increases or ...

‘thesource base consists of total currency outstanding (held by the public and in the vaults of depository institutions) plus the reserve balances of depository institutions at Federal Reserve Banks. The level of the money stock (currency in the hands of the public plus checkable deposits) that can be supported with a given level of the source base depends on resen’e requirements. If required r...

‘The idea of adjusting the monetary base to reflect changes in reserve requirements was proposed initially by Karl Brunner (1961) in an effort to formulate an “empirically significant theory” of the money supply process. Brunner called this adjustment “liberated reserves.” He was the first to compile data on the adjusted monetary base and empirically investigate the relationship between his mea...

In this paper I will argue that the institutional implementations that we commonly include in our monetary aggregates are actually more similar to the concept of monetary base. I will also argue that the institutional implementation of accounts payable operates as money. This slightly translated definition implies that a new monetary aggregate that includes accounts payable may be useful for co...

The exchange rate regime in Iran is practically fixed. The Central Bank of Iran (CBI) has committed itself to trying to bring about a particular exchange rate regime to meet two important targets: 1. Sustaining competitiveness of the economy, 2. Acquiring the share of foreign reserves in monetary base in a predetermined level. Since 2001 the share of foreign reserves in monetary base has i...