Another Monetary Inflation Coordinate. Studies on the US Federal Reserves’ Monetary Base
Eco-Economics Review, ISSN 2457-9076
12 Pages Posted: 9 Jul 2016
Date Written: June 7, 2015
Be it ‘excess reserves’ that deposit money part of all entities at the central bank not used to satisfy statutory reserve requirements, plus all disposable cash held by the same institutions and not used to satisfy statutory reserve requirements either. Would this be rather common place, influenced or not by inflation, or, on the contrary, as significant as influencing and well correlating with inflation rate? Or, this might be equally viewed in the mirror, i.e. once, under representative money-gold standard, no excess reserves, inflation going down to zero. We could see more than expectable about so far in this paper, here including some long term causalities between these two, as monetary variables.
Keywords: inflation rate, excess monetary reserves, fiat and representative money, central bank
JEL Classification: B1, C5, E5
Suggested Citation: Suggested Citation