What caused this explosion in the monetary base

Reference no: EM13694615

From 2007 to 2011 the U.S. monetary base increased by 200 percent, but M1 and M2 increased by 40 percent and 25 percent respectively. What caused this explosion in the monetary base? Why didn’t M1 and M2 increase by the same percentage as the monetary base?

Reference no: EM13694615

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