Concept
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The Money Multiplier in Reality
![U.S. Monetary Base](../../../../../../../../../figures.boundless-cdn.com/21086/full/u.s.-monetary-base.jpg)
U.S. Monetary Base
The monetary base is the sum of currency and reserves held in accounts at the central bank. After the financial crisis the monetary base increased dramatically: the result of banks starting to hold excess reserves as well as the central bank increasing the supply of reserves.
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