Learn the money supply definition and why economists study money supply. Understand the M1, M2, M3, and M4 measures of money supply and see money supply charts. Related to this Question How does monetary policy control the money supply?
M1 (Narrow Money) M2: M3: (Broad Money) M4: Money Multiplier (m) Money Supply (M3) vs Monetary Base (Mo) Demonetisation and its effect on Money Supply (M3) and Reserve Money (Mo) What if the demonetisation was a success? Why is the currency in circulation a liability to RBI or gov...
Which is broad money M3 or M4? M3 and M4are known as broad money. These gradations are in decreasing order of liquidity. M1 is most liquid and easiest for transactions whereas M4 is least liquid of all. M3 is the most commonly used measure of money supply. ...
M2 is the next level. That consists of M1 plus any short-term cash investments, which include money market accounts, money market mutual funds, and certificates of deposit of under $100,000. M2 is usually the money supply level that most economists and central bankers pay the closest attentio...
The equilibrium requires log(mdt) = log(mst), where ms is the real money supply. Let us substitute Equation (2) for log(k) in Equation (4) to obtain: log(mdt) = m0 + m1 it + m2 log(ct) + m3 k0 defgdpt + m3 k1 debtgdpt + m3 k2 fdgdpt + m4 log(qt), or (5) l...