Share This Article:

Economic Definition of high-powered money. Defined.

Offline Version: PDF

Term high-powered money Definition: Also termed the monetary base, the total of currency held by the nonbank public, vault cash held by banks, and Federal Reserve deposits of the banks. This contains the monetary components over which the Federal Reserve System has relatively complete control and is often used as a guide for the Fed's money control ability and monetary policy.


« hierarchy of needs | historical cost »


Alphabetical Reference to Over 2,000 Economic Terms