Modern Money Mechanics

"Modern Money Mechanics" was a booklet published and distributed by the Federal Reserve Bank of Chicago, originally written by Dorothy M. Nichols in May 1961. Described as a "workbook on bank reserves and deposit expansion", the text offers a detailed description of the basic process of money creation in a fractional reserve banking system. The approach taken illustrates the changes in bank balance sheets that occur when deposits in banks change as a result of monetary action by the Federal Reserve System.

The booklet is now out of print.

Revision history

Revised

• May 1968
• September 1971
• June 1975
• October 1982
• June 1992 (revision prepared by Anne Marie L. Gonczy)

See also

• The Mystery of Banking

Links

• Modern Money Mechanics, February 1994 (out of print)
  • Print version(PDF) (Scribd)
  • Online version (PDF, PDF w/spacing) (Scribd)
  • Internet Archive
  • Amazon.com

• Modern Money Mechanics at Wikisource

• Federal Reserve Publications
  • Publications Catalog
  • Federal Funds Rate Changes(Base Deposit Rate)