High-powered money, also known as the monetary base, is the total amount of money created by the central bank of a country. It includes the total currency circulating in the public, plus the currency that is physically held in the vaults of commercial banks, plus the reserves of commercial banks with the central bank. High-powered money is sometimes referred to as "high-powered" because it can be multiplied through the process of fractional reserve banking. The monetary base has traditionally been considered high-powered because its increase will typically result in a much larger increase in the supply of demand deposits through banks loan-making, a ratio called the money multiplier. However, for those that do not agree with the theory of the money multiplier, the monetary base can be thought of as high powered because of the fiscal multiplier instead. High-powered money is an important concept in monetary policy, as it is a component of a nations money supply and can be managed by the central bank through buying and selling government bonds.