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> A central banker could easily achieve a perfectly accurate prediction of the amount of currency available Not really. Banks and corporations hold reserves, l
by lolcraft 13y ago
> A central banker could easily achieve a perfectly accurate prediction of the amount of currency available
Not really. Banks and corporations hold reserves, lend "money" that's actually debt between banks not backed by hard currency, pay debt directly to the central bank... it's not that easy. At a given time, there are many "amounts of currency" coexisting at the same time.
- natrius 13y agoRight. I was trying to choose straightforward terms that would make it clear that I was referring to the monetary base, not any other measure of the money supply. I guess that didn't work.