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What is the explanation for the determinants of high-powered money.?
Wiki User
∙ 11y ago
Bank reserves and currency held by the public-is ultimately under the control of government,which have authority to alter the conditions of issue & to change the quantity of outstanding.statutory regulations concerning money therefore play an important role in monetary histories of the most countries and in particular of the united states.
For the united states,high-powered money are gold coins or certificates and other money fully backed by gold;paper money or deposits balance not secured by gold reserves.
Wiki User
∙ 11y ago
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