Money Supply: Mastering Money Supply, Navigating the Financial Landscape with Confidence

By Fouad Sabry

What is Money Supply

The term "money supply" is used in the field of macroeconomics to refer to the entire amount of money that is owned by the general population at a specific point in time. The term "money" can be defined in a number of different ways; however, the most common metrics commonly comprise demand deposits and currency that is in circulation. In most cases, the national statistical agency or the central bank of the country is the entity responsible for recording and publishing data regarding the money supply. Measures of the empirical money supply are typically referred to by names such as M1, M2, M3, etc., depending on the extent to which they encompass a broad definition of money. The specific definitions differ from one nation to the next, in part because of the traditions that are associated with the various national financial institutions.

How you will benefit

(I) Insights, and validations about the following topics:

Chapter 1: Money supply

Chapter 2: Central bank

Chapter 3: Inflation

Chapter 4: Deflation

Chapter 5: Interest rate

Chapter 6: Monetary policy of the United States

Chapter 7: Currency substitution

Chapter 8: Monetary policy

Chapter 9: Hong Kong dollar

Chapter 10: Fractional-reserve banking

Chapter 11: Currency board

Chapter 12: Monetary base

Chapter 13: Open market operation

Chapter 14: Reserve requirement

Chapter 15: Foreign exchange reserves

Chapter 16: Money creation

Chapter 17: Linked exchange rate system in Hong Kong

Chapter 18: Modern monetary theory

Chapter 19: Money

Chapter 20: History of monetary policy in the United States

Chapter 21: Monetary policy of the Philippines

(II) Answering the public top questions about money supply.

(III) Real world examples for the usage of money supply in many fields.

Who this book is for

Professionals, undergraduate and graduate students, enthusiasts, hobbyists, and those who want to go beyond basic knowledge or information for any kind of Money Supply.

• Language: English
• Publisher: One Billion Knowledgeable
• Release date: Jan 25, 2024

Book preview

Chapter 1: Money supply

In macroeconomics, the money supply (or money stock) is the total amount of currency held by the public at a given time. There are numerous ways to define money, but standard measures include currency in circulation (i.e., physical cash) and demand deposits (the easily accessible assets of depositors on the books of financial institutions). A country's central bank may employ a definition of legal tender for its own purposes.

China M2 money supply vs USA M2 money supply

Comparative chart on money supply growth against inflation rates M2 as a % of GDP

M2 as a percent of GDP

Typically, a government agency or the country's central bank collects and publishes money supply information. Public and private sector analysts monitor changes in the money supply due to the belief that such changes influence the prices of securities, inflation, exchange rates, and business cycles.

In accordance to credit mechanics: Bank money expansion or destruction (or unchangement) are depending on payment flows (after given loans by commercial banks to nonbank