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)
 * February 1994

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)