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What is The Supply of Money about?

The document discusses the definitions and determinants of money supply, highlighting three main definitions: M1 (narrowest), M2 (broader including time deposits), and M3 (broadest including various financial institutions). It explains how money supply is influenced by factors such as the required reserve ratio, bank reserves, public desire for currency versus deposits, and high-powered money. Additionally, it outlines the relationship between money supply and high-powered money, emphasizing the role of com

Author

social sites

Language

EN