Money Supply, the only way is up….?

För den som kommer ihåg Nationalekonomi A kursen.

In economics, the money supply or money stock, is the total amount of money available in an economy at a particular point in time.^[1] There are several ways to define “money,” but standard measures usually include currency in circulation and demand deposits (depositors’ easily-accessed assets on the books of financial institutions).

• M0: In some countries, such as the United Kingdom, M0 includes bank reserves, so M0 is referred to as the monetary base, or narrow money.^[11]

• MB: is referred to as the monetary base or total currency.^[8] This is the base from which other forms of money (like checking deposits, listed below) are created and is traditionally the most liquid measure of the money supply.^[12]

• M1: Bank reserves are not included in M1.

• M2: represents money and “close substitutes” for money.^[13] M2 is a broader classification of money than M1. Economists use M2 when looking to quantify the amount of money in circulation and trying to explain different economic monetary conditions. M2 is a key economic indicator used to forecast inflation.^[14]

• M3: Since 2006, M3 is no longer tracked by the US central bank.^[15] However, there are still estimates produced by various private institutions. (M2 +large deposits and other large, long-term deposits)

Källa, Wikipedia.

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