Daily Archives: January 24, 2016

Money and Banking – Part 3: Monetary Base, Reserves, and Central Bank’s Balance Sheet

By Eric Tymoigne

(A quick note: I noticed that the M&B posts get posted on other blogs. If you want me to respond to you, you should comment at NEP.)

MONETARY BASE AND THE BALANCE SHEET OF THE FED.

Post 2 examined the balance sheet of the central bank:

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Now that we have an understanding of how the balance sheet of the Fed works, it is possible to go into the details of how the Fed operates in the economy in terms of monetary policy.

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