Money Supply

Discipline: Economics

Money Supply, or Money Stock, refers to the total amount of money available in an economy to the general public at a given time.

There are several ways to look at money supply:

M0: The amount of physical currency in circulation in an economy.

M1: M0 + checkable deposits (such as checking accounts).

M2: M1 + small time deposits (such as savings accounts).

M3: M2 + large time deposits (such as large-denomination time deposits).

L: M3 + liquid and near-liquid assets (such as Treasury bills).

Also see: budget deficit, budget surplus, fiscal policy, government spending, monetary policy, seignorate, taxation


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