Friday, October 15, 2010

SLIP SLIDING AWAY

ADJUSTED MONETARY BASE

"According to the St. Louis Federal Reserve publication Monetary Base in an Era of Financial Change, the 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.

The Adjusted Monetary Base is the one monetary component completely under the control of the Federal Reserve. "

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