While the Reserve Bank directly controls the creation of base money, the amount of broad money depends on interactions between banks and their customers. The Reserve Bank’s monetary policy can influence the amount of broad money, but it does not directly control it. Most broad money is in the form of bank deposits.
1 Version prepared for presentation. www.bportugal.pt 1  In this initial address, I see it as important to clarify three questions raised in these reports and explored intensely in the ensuing public debate. First question: Why was the Board of BES not removed sooner?