Money supply: Difference between revisions
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imported>Nick Gardner |
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==Measurement of the money supply== | ==Measurement of the money supply== | ||
There are several different | There are several different measures of the money supply, each of which denotes a different degree of liquidity, ranging from notes and coins (which are completely liquid) to those bank deposits that cannot be withdrawn until after a waiting period. The conventional terminology recognises three categories:- | ||
:* M3 (M4 in the UK) is known as "broad money", and consists of cash, current account deposits in banks and other financial institutions, savings deposits and time-restricted deposits. | |||
:* M1 is known as "narrow money", and consists mainly of cash in circulation and current account deposits. | |||
:* M0 (in the UK) is known as the "monetary base" and consists of cash in circulation, cash in banks’ tills and banks’ operational deposits held at the central bank. | |||
==References== | ==References== | ||
<references/> | <references/> | ||
Revision as of 05:38, 5 December 2008
Determinants of the supply of money
Control of the money supply
Economic effects of the money supply
Measurement of the money supply
There are several different measures of the money supply, each of which denotes a different degree of liquidity, ranging from notes and coins (which are completely liquid) to those bank deposits that cannot be withdrawn until after a waiting period. The conventional terminology recognises three categories:-
- M3 (M4 in the UK) is known as "broad money", and consists of cash, current account deposits in banks and other financial institutions, savings deposits and time-restricted deposits.
- M1 is known as "narrow money", and consists mainly of cash in circulation and current account deposits.
- M0 (in the UK) is known as the "monetary base" and consists of cash in circulation, cash in banks’ tills and banks’ operational deposits held at the central bank.