Home > Announcements > Guides to the Bank > Bank of Japan FAQs > Compilation of Statistics, and Research and Studies > What is the monetary base?

What is the monetary base?

The monetary base refers to the amount of currency directly supplied by the Bank to the economy. Specifically, it is defined as the sum of banknotes in circulation, coins in circulation, and current account deposits held by financial institutions at the Bank.

Monetary Base = Banknotes in Circulation + Coins in Circulation + Current Account Balances (Current Account Deposits at the Bank)

Related Information