Retrieving "Physical Currency" from the archives

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  1. Money Supply

    Linked via "physical currency"

    $$M = \mu \times B$$
    Where the money multiplier is inversely related to the banks' desire to hold excess reserves ($\epsilon$) and the public's propensity to hold physical currency ($c$).
    $$\mu = \frac{1 + c}{c + \text{Reserve Requirement} + \epsilon}$$