What is money supply?

  • (noun): The total stock of money in the economy; currency held by the public plus money in accounts in banks.

Money Supply

In economics, the money supply or money stock, is the total amount of monetary assets available in an economy at a specific time. 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).

Read more about Money Supply.

Some articles on money supply:

Subprime Crisis Background Information - Effect On The Money Supply
... One measure of the availability of funds (liquidity) can be measured by the money supply ... money supply (M1) increased significantly as the government intervened to inject funds into the system ... The focus on managing the money supply has been de-emphasized in recent history as inflation has moderated in developed countries ...
Money Supply - Arguments
... goods by increasing or decreasing the nation's money supply (relative to trend), which lowers or raises interest rates, which stimulates or restrains ... century concerned the central bank's ability to predict how much money should be in circulation, given current employment rates and inflation rates ... of targeting a pre-specified path for the money supply independent of current economic conditions— even though in practice this might involve regular intervention with open market operations ...
Lucas Island Model - Applications of The Model
... facilitates an endogenous demand for money ... is reached when the old exchange the goods for money with the young ... If the money supply is constant and evenly distributed among the old, the price level is assumed to be constant i.e ...
Subprime Mortgage Crisis Solutions Debate - Liquidity - Monetary Policy and "credit Easing" - Arguments Against Credit Easing
... Credit easing involves increasing the money supply, which presents inflationary risks that could weaken the dollar and make it less desirable as a reserve currency, affecting the ... The challenge to reduce the money supply at the right cadence and amount will be unprecedented once the economy is on firmer footing ... Further, reducing the money supply as the economy begins to recover may place downward pressure against economic growth ...
Friedman's K-percent Rule
... rule is the monetarist proposal that the money supply should be increased by the central bank by a constant percentage rate every year, irrespective of business cycles ... The book attributed inflation to excess money supply generated by a central bank ... spirals to the reverse effect of a failure of a central bank to support the money supply during a liquidity crunch ...

Famous quotes containing the words supply and/or money:

    Artistic inspiration ignores the law of supply and demand.
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