If nothing else happens, we are in the world of monetary base control.

Central banks use open market operations to change the monetary base.

Such an act would have the same effect as increasing the amount of dollars in the monetary base.

"How come the monetary base has been expanding at an annual rate of over 22 percent for the last three months?"

The monetary base is only one component of money supply, however.

The rule gives a target for the monetary base in the next quarter (about 13 weeks).

Thus although the monetary base is controlled, spending still expands.

There are serious problems, however, with this form of monetary base control:

This makes it virtually impossible to have a precise control of the monetary base.

Assume that the authorities seek to control M0, the broad monetary base.

These purchases increased the monetary base in a way similar to a purchase of government securities.

Provided this agreement exists there can be no pretence at a system of monetary base control.

MB: is referred to as the monetary base or total currency.

They have none of them anything to do with attempts to specify a ratio for monetary base type control purposes.

There is no acceptable theory linking in a necessary way the monetary base created by central banks to inflation.

Monetary policy can be implemented by changing the size of the monetary base.

Nonsterilized intervention is a policy that alters the monetary base.

Monetary base control is often discussed in the context of controlling the narrow base.

This can lead to a cumulative process where inflation increases continuously without an expansion in the monetary base.

Sterilized intervention is a policy that attempts to influence the exchange rate without changing the monetary base.

Therefore, to sterilize that increase, the central bank must also sell government debt to contract the monetary base by an equal amount.

These have included interest rates, reserve requirements, and various measures of the money supply and monetary base.

According to Friedman, a central bank can increase the monetary base even if the interest rate vanishes; it only needs to continue buying bonds.

Instruments of monetary policy have included short-term interest rates and bank reserves through the monetary base.

The monetary base is typically controlled by the institution in a country that controls monetary policy.