base money (monetary base)

What is base money (monetary base)?

base money (monetary base) definition and meaning on Finance terms:
Currency (banknotes and coins) in circulation plus the minimum reserves credit institutions are required to hold with the Eurosystem and any excess reserves they may voluntarily hold in the Eurosystem’s deposit facility, all of which are liabilities on the Eurosystem’s balance sheet. Base money is sometimes also referred to as the “monetary base”. <