00:01
So here we're talking about the monetary base, and really we just need to be able to define it.
00:04
The monetary base is defined as currency, ooh, that wasn't a very good handwriting, currency plus deposits at the central bank, right? that is simply the definition of what the monetary base is.
00:21
And it's the idea, roughly speaking, that this is the fuel from which commercial banks, that are making loans for profit can lend or create deposits, because that's basically the same thing, right? so the monetary base is sort of like the raw stock of money being pumped into the economy by the central bank.
00:48
And then from that seed money that's put into the economy by the central bank, the commercial banks start doing loans and creating deposits and all that stuff.
01:00
So here the money monetary base is currency plus deposits at the central bank.
01:06
The currency is $11444 .6 billion plus the bank deposits held at the fed are $1422 .3 billion.
01:21
But the key is that the 2265 .83 at $1 .83 at...