Browse:  #  A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z 

High-powered money

High-powered money Definition

High-powered money is a macroeconomic term referring to the monetary base, which is controlled by the institution in a country that controls monetary policy. This is usually either the finance ministry or the central bank.

The monetary base is called high-powered because the magnitude of changes in monetary base are greatly magnified by the money multiplier.

As an example, a 1% increase in monetary base may lead to a 10% increase in the money supply due to money multipler effects.








Browse:  #  A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z