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Money supply

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Money supply

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In economics, 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 each includes currency in circulation and demand deposits.[2][3] Money supply data are recorded and published. Public- and private-sector analysts have long monitored changes in money supply because of its possible effects on the price level and the nominal or real value of output.[4] That relation is historically associated with the quantity theory of money and evidence of a direct empirical relation between long-term price inflation and money-supply growth. These underlie reliance on monetary policy as a means of controlling inflation.[5][6] Money is used in final settlement of a debt and as a ready store of value. Its different functions are associated with different empirical measures of the money supply.

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