From 1929 to 1933, the Federal Reserve increased the monetary base by 20 percent, yet the money
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Question:
From 1929 to 1933, the Federal Reserve increased the monetary base by 20 percent, yet the money supply (M1) fell by 25 percent, and M2 fell even more.
1) How is the monetary base different from the money supply?
2) How can the Fed affect the money base??
Related Book For
Money Banking and Financial Markets
ISBN: 978-1259746741
5th edition
Authors: Stephen Cecchetti, Kermit Schoenholtz
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