"The money supply (or money stock) refers to the total volume of money held by the public at a particular point in time."
The amount of money in circulation in an economy and the different ways to measure it, such as M1, M2, and M3.
Money: This topic involves the definition of money, its functions, and characteristics.
Money creation: This topic involves the process of money creation, the role of central banks, and commercial banks.
Money demand: This topic involves the factors that affect the demand for money, including transaction, precautionary, and speculative motives.
Monetary policy: This topic involves the tools used by the central banks to influence the money supply, including open market operations, reserve requirements, and discount rate.
Inflation: This topic involves the relationship between money supply and the price level, including the Phillips curve and the quantity theory of money.
Money multiplier: This topic involves the concept of the money multiplier and how it affects the money supply.
Monetary aggregates: This topic involves the different measures of the money supply, including M1, M2, and M3.
Monetary transmission mechanism: This topic involves the process by which monetary policy affects the economy, including the interest rate channel, the exchange rate channel, and the wealth channel.
Banking system: This topic involves the functions and structure of the banking system, including the role of the central bank, commercial banks, and shadow banks.
Financial intermediation: This topic involves the role of financial intermediaries in the economy, including banks, credit unions, and insurance companies.
M0: Refers to the total amount of physical currency in circulation, such as coins and paper money.
M1: Includes M0 plus all demand deposits, which are funds held in checking accounts and other accounts that can be easily accessed by the account holder.
M2: Includes M1 plus savings deposits, money market mutual funds, and other time deposits that can be easily converted to cash.
M3: Includes M2 plus large time deposits, such as certificates of deposit, and institutional money market funds.
M4: Includes M3 plus other types of financial assets, such as government securities and corporate bonds.
MB: Refers to the monetary base, which includes all physical currency in circulation, reserves held by banks, and other liquid assets held by the central bank.
MZM: Stands for "Money Zero Maturity," which includes all assets that can be easily converted into cash, such as checking and savings deposits, money market funds, and other short-term instruments.
MPA: Refers to the adjusted monetary base, which includes the monetary base plus currency held by the public and certain types of bank deposits.
"Standard measures usually include currency in circulation (i.e. physical cash) and demand deposits (depositors' easily accessed assets on the books of financial institutions)."
"Money supply data is recorded and published, usually by the national statistical agency or the central bank of the country."
"Empirical money supply measures are usually named M1, M2, M3, etc., according to how wide a definition of money they embrace."
"Even for narrow aggregates like M1, by far the largest part of the money supply consists of deposits in commercial banks."
"Currency (banknotes and coins) issued by central banks only makes up a small part of the total money supply in modern economies."
"The public's demand for currency and bank deposits and commercial banks' supply of loans are consequently important determinants of money supply changes."
"These decisions are influenced by central banks' monetary policy, not least their setting of interest rates."
"The money supply is ultimately determined by complex interactions between non-banks, commercial banks, and central banks."
"According to the quantity theory supported by the monetarist school of thought, there is a tight causal connection between growth in the money supply and inflation."
"Several major central banks during that period attempted to control the money supply closely, following a monetary policy target of increasing the money supply stably."
"The strategy was generally found to be impractical because money demand turned out to be too unstable for the strategy to work as intended."
"The money supply has lost its central role in monetary policy."
"Instead, they focus on adjusting interest rates, in developed countries normally as part of a direct inflation target."
"Money supply measures may still play a role in monetary policy, however, as one of many economic indicators that central bankers monitor."
"...to judge likely future movements in central variables like employment and inflation."
"The precise definitions vary from country to country, in part depending on national financial institutional traditions."
"Money supply data is recorded and published, usually by the national statistical agency or the central bank of the country."
"The public's demand for currency and bank deposits, and commercial banks' supply of loans are...important determinants of money supply changes."
"Instead, they focus on adjusting interest rates, in developed countries normally as part of a direct inflation target which leaves little room for a special emphasis on the money supply."