Virtually all of the growth of the monetary base is caused by

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The growth of the monetary base is mostly caused by the open market operations conducted by the central bank, which involve the purchase of securities from banks and other financial institutions. This increases the reserves of these institutions, and as a result, the overall monetary base of the banking system. Increases in demand for currency by the public (represented by increases in the currency-deposit ratio), increases in discount loans, and decreases in the required reserve ratio can all affect the money supply, but they do not directly contribute to the growth of the monetary base.

Virtually All of the Growth of the Monetary Base Is