Money supply

The money supply is the total value of money available in an economy at a point of time. There are several ways to define "money", but standard measures include currency in circulation and demand deposits; each country's central bank may use its own definitions of. Money supply data is recorded and published by the government or the central bank of the country. Public and private sector analysts monitor changes in the money supply because of the belief that such changes affect the price level of securities, the exchange rates and the business cycle; the relationship between money and prices has been associated with the quantity theory of money. There is strong empirical evidence of a direct relationship between the growth of the money supply and long-term price inflation, at least for rapid increases in the amount of money in the economy. For example, a country such as Zimbabwe which saw rapid increases in its money supply saw rapid increases in prices; this is one reason for the reliance on monetary policy as a means of controlling inflation.

The nature of this causal chain is the subject of some debate. Some heterodox economists argue that the money supply is endogenous and that the sources of inflation must be found in the distributional structure of the economy. In addition, those economists seeing the central bank's control over the money supply as feeble say that there are two weak links between the growth of the money supply and the inflation rate. First, in the aftermath of a recession, when many resources are underutilized, an increase in the money supply can cause a sustained increase in real production instead of inflation. Second, if the velocity of money changes, an increase in the money supply could have either no effect, an exaggerated effect, or an unpredictable effect on the growth of nominal GDP. Commercial banks play a role in the process of money creation under the fractional-reserve banking system used throughout the world. In this system, money is created; this is because the loan, when drawn on and spent finishes up as a deposit in the banking system, counted as part of money supply.

After putting aside a part of these deposits as mandated bank reserves, the balance is available for the making of further loans by the bank. This process continues multiple times, is called the multiplier effect; this new money makes up the non-M0 components in the M1-M3 statistics. In short, there are two types of money in a fractional-reserve banking system: central bank money — obligations of a central bank, including currency and central bank depository accounts commercial bank money — obligations of commercial banks, including checking accounts and savings accounts. In the money supply statistics, central bank money is MB while the commercial bank money is divided up into the M1-M3 components; the types of commercial bank money that tend to be valued at lower amounts are classified in the narrow category of M1 while the types of commercial bank money that tend to exist in larger amounts are categorized in M2 and M3, with M3 having the largest. In the United States, a bank's reserves consist of U.

S. currency held by the bank plus the bank's balances in Federal Reserve accounts. For this purpose, cash on hand and balances in Federal Reserve accounts are interchangeable. Reserves may come from any source, including the federal funds market, deposits by the public, borrowing from the Fed itself. A reserve requirement is a ratio a bank must maintain between deposit reserves. Reserve requirements do not apply to the amount of money a bank may lend out; the ratio that applies to bank lending is its capital requirement. Central banks can influence the money supply by open market operations, they can increase the money supply by purchasing government securities, such as government bonds or treasury bills. This increases the liquidity in the banking system by converting the illiquid securities of commercial banks into liquid deposits at the central bank; this causes the price of such securities to rise due to the increased demand, interest rates to fall. These funds become available to commercial banks for lending, by the multiplier effect from fractional-reserve banking and bank deposits go up by many times the initial injection of funds into the banking system.

In contrast, when the central bank "tightens" the money supply, it sells securities on the open market, drawing liquid funds out of the banking system. The prices of such securities fall as supply is increased, interest rates raise; this has a multiplier effect. This kind of activity reduces or increases the supply of short term government debt in the hands of banks and the non-bank public lowering or raising interest rates. In parallel, it increases or reduces the supply of loanable funds and thereby the ability of private banks to issue new money through issuing debt; the simple connection between monetary policy and monetary aggregates such as M1 and M2 changed in the 1970s as the reserve requirements on deposits started to fall with the emergence of money funds, which require no reserves. At present, reserve requirements apply only to "transactions deposits" – checking accounts; the vast majority of funding sources used by private banks to create loans are not limited by bank reserves. Most commercial and industrial loans are financed by issuing large denomination CDs.


Coniston massacre

The Coniston massacre, which took place in the region around the Coniston cattle station in the Territory of Central Australia from 14 August to 18 October 1928, was the last known sanctioned massacre of Indigenous Australians and one of the last events of the Australian Frontier Wars. In a series of punitive expeditions led by Northern Territory Police constable William George Murray, people of the Warlpiri and Kaytetye groups were killed; the massacre occurred in response to the murder of dingo hunter Frederick Brooks, killed by Aboriginal people in August 1928 at a place called Yukurru known as Brooks Soak. Official records at the time state that at least 31 people were killed, however analysis of existing documentation and Aboriginal oral histories reveal that the fatalities were to have been as high as 200. Central Australia was Australia's last colonial frontier, sparsely populated and, by 1928, was facing the fourth year of the harshest drought on record. Parched conditions, though discounted by authorities as a precipitating factor, were to play a key role in events at Coniston.

Appropriating water resources was fundamental to pastoral economy, exclusive control over water was a priority in order to maintain cattle in good condition on any station. With the worsening of the drought, as waterholes dried up, the starving nomadic Aboriginals were forced to move back in towards the permanent waterholes and soaks located on the new station properties, it was believed in the white community that the interests of traditional Aboriginal land owners and those of cattle stations could not be reconciled. Either one or the other must prosper. Pastoralists regarded their presence, begging for food or spearing cattle, as an "aggravation", would drive the incoming Aboriginals from these few remaining water sources, according to Cribbin, in order to ensure the survival of their cattle. 61-year-old Fred Brooks had worked as a station hand on Randall Stafford's Coniston station, 240 mi north-west of Alice Springs, in a number of stints since World War I. In July 1928 he asked Stafford.

Stafford warned him that he and the Warlpiri woman he cohabited with, had been threatened by "myalls" and that venturing any further than 22 km west would be unsafe. Alice was believed to have broken kinship rules by living with the white man. Brooks bought two camels and on 2 August, left with two 12-year-old Aboriginal children and Dodger, to trap dingos for the 10 s bounty on their scalps. Approaching a soak 14 mi from the homestead, he found around 30 Ngalia-Warlpiri people camped. Brooks decided to camp with them; the first two days were uneventful and Brooks caught several dingoes. According to evidence in a inquiry, on 4 August, Charlton Young and a companion who were exploring the area for a mining company, stopped by and warned Brooks that the Aboriginal people had been getting "cheeky" by visiting the mining camps armed, demanding food and tobacco. About the same time several Aboriginal children were being taken away to Alice Springs. According to one version, Brooks had been approached several times to trade but had so far refused, until 6 August.

The Aboriginal tradition, related to Peter and Jay Read by Alec Jupurrula and Jack Japaljarri, holds that a Warlpiri, Japanunga Bullfrog and his wife were approached by Brooks who asked Japanunga if he could take his wife, Marungardi, to do Brooks' washing in exchange for food and tobacco. Marugardi performed her chores but, either returned to Japanunga's camp without the promised supplies or did not return, so at dawn the next day, Japanunga killed Brooks. A third account is more detailed, stating that Japanunga became enraged when he found his wife in bed with Brooks and attacked him, severing an artery in his throat with his boomerang; this account claims that Bullfrog, his uncle Padirrka, Marungardi beat Brooks to death, that Aboriginal elders, in fear for the foreseeable consequences banished Bullfrog and Padirrka and ordered Brooks' two boys to return to the homestead and say that he had died of natural causes. Accounts vary as to; until the publication of Cribbin's book in 1984, it was believed that Bruce Chapman, the prospector, was first on the scene.

The following day an Aboriginal person named Alex Wilson camped at the now deserted soak and finding the body rode back to the station, where he described hysterically how Brooks had been "chopped up" by 40 Aboriginal people and the parts stuffed in a rabbit burrow. Randall Stafford had been in Alice Springs requesting police to attend to prevent the spearing of his cattle, he chose to wait for the police. No one returned to the soak and no one attempted to retrieve the body. On 11 August, the Government Resident J. C. Cawood sent Constable William George Murray, the officer in charge at Barrow Creek who held the post of Chief Protector of Aborigines, to Coniston to investigate the complaints of cattle spearing. Told of the murder, Murray drove back to Alice Springs and telephoned Cawood, who refused to send reinforcements, telling Murray to deal with the Aboriginal people as he saw fit. Returning to Coniston, Murray questioned Dodger and Skipper who described the circumstances of the murder and named Bullfrog and Marungali as the killers.

According to his own report, Murray obtained the names of 20 accomplices. Mu

Williamsdale, Ohio

Williamsdale is a census-designated place in St. Clair Township, Butler County, United States; the population was 581 at the 2010 census. Williamsdale is located in the southern part of St. Clair Township, just north of the village of New Miami, it is in the valley of the Great Miami River but does not touch it. U. S. Route 127 forms the western edge of the CDP, leading south into New Miami and thence into the city of Hamilton, north to Eaton; the unincorporated community of Overpeck is directly along Hamilton Trenton Road. According to the United States Census Bureau, Williamsdale has a total area of 0.17 square miles, all land