Money Supply and Monetary Base

Money Supply and the Monetary Base: Where New Money Comes From, and Why It Is Tied to Inflation

This lesson explains what the monetary base and broad money (naqdinegi, M2) actually count, how new money is created on two levels (the central bank and the banking network), what the money multiplier measures, and why sustained money growth reaches inflation with a lag. With a labelled hypothetical example and dated real figures from the Central Bank of Iran for the end of Esfand 1404 (March 2026).