Where
M1 = M1 money supply (money and notes in circulation plus commercial bank deposits),
BASE = monetary base (money and notes in circulation plus reserves of commercial banks),
RES = international reserves of the central bank (foreign assets plus gold reserves), valued in domestic currency,
GOLD = gold reserves of the central bank, valued in domestic currency = PGOLD × QGOLD,
PGOLD = the official domestic currency price of gold, and
QGOLD = the physical quantity (for example, in metric tons) of gold reserves.
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