Updating the rba index of commodity prices
This continuum corresponds to the way that different types of money are more or less controlled by monetary policy.
Narrow measures include those more directly affected and controlled by monetary policy, whereas broader measures are less closely related to monetary-policy actions.
In the United States, a bank's reserves consist of U. currency held by the bank (also known as "vault cash" For this purpose, paper currency on hand and balances in Fed accounts are interchangeable (both are obligations of the Fed).
Reserves may come from any source, including the federal funds market, deposits by the public, and borrowing from the Fed itself.
The typical layout for each of the "M"s is as follows: The different forms of money in government money supply statistics arise from the practice of fractional-reserve banking.First, in the aftermath of a recession, when many resources are underutilized, an increase in the money supply can cause a sustained increase in real production instead of inflation.