The Domestic Adjusted Monetary Base

• DOI: 10.20955/wp.2000.002
• Publication Date: 2018-10-11T18:47:00Z
• Authors: Richard G. Anderson; Robert H. Rasche
• Keywords: Base (topology)

This paper provides a consistent, monthly measure of the amount U.S. adjusted monetary base that is domestically held, and held abroad. Most macroeconomic models address role outside money as determinant economy's aggregate price level are closed economy models, suggesting need to accurately domestic base. To do so, this presents new method estimate currency abroad, which exploits data on processing at Federal Reserve's 37 cash offices. Estimates aggregates, including M1 M2, also produced. Relative previous studies estimates currently included in Flow Funds National Income Product Accounts, our suggest larger exports during 1970s early 1980s, sharp slowing since 1995.