money supply

money supply
   A measure of the amount of cash and credit in general circulation within the economy available to purchase goods, services and securities. The broadest measure is M4, the aggregate of money held in notes and coins, the total amount lent by banks to individuals, companies and other banks, and the total amount of money borrowed by the Government. If there is too much money in the economy, interest rates tend to go down and inflation rises. If there is too little, interest rates tend to rise and prices and production go down.
   The figures are important for monetarists, who believe in managing the economy through interest rates and money supply.

Glossary of UK Government and Politics . 2013.

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Look at other dictionaries:

  • money supply — money sup.ply n [singular] technical all the money that exists in a country s economic system at a particular time ▪ his policy of controlling the money supply and cutting public spending …   Dictionary of contemporary English

  • money supply — n. All money in the economy at a given time. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008 …   Law dictionary

  • money supply — ► NOUN ▪ the total amount of money in circulation or in existence in a country …   English terms dictionary

  • Money supply — Finance Financial markets Bond market …   Wikipedia

  • money supply — The amount of money in the economy, consisting primarily of currency in circulation plus deposits in banks: M 1 U.S. money supply consisting of currency held by the public, traveler s checks, checking account funds, NOW and super NOW accounts,… …   Financial and business terms

  • Money supply — M1 A: Currency plus demand deposits M1 B: M1 A plus other checkable deposits. The New York Times Financial Glossary M2: M1 B plus overnight repos, money market funds, savings, and small (less than $100M) time deposits. The New York Times… …   Financial and business terms

  • money supply — Econ. the sum of demand or checking account deposits and currency in circulation. [1875 80] * * * Liquid assets held by individuals and banks. The money supply includes coins, currency, and demand deposits (checking accounts). Some economists… …   Universalium

  • money supply — monetary stock The quantity of money issued by a country s monetary authorities (usually the central bank). If the demand for money is stable, the widely accepted quantity theory of money implies that increases in the money supply will lead… …   Big dictionary of business and management

  • money supply — noun the total stock of money in the economy; currency held by the public plus money in accounts in banks • Hypernyms: ↑funds, ↑finances, ↑monetary resource, ↑cash in hand, ↑pecuniary resource • Hyponyms: ↑M1, ↑M2, ↑ …   Useful english dictionary

  • money supply — / mʌni səˌplaɪ/ noun the amount of money which exists in a country COMMENT: Money supply is believed by some to be at the centre of control of a country’s economy. If money supply is tight (i.e. the government restricts the issue of new notes and …   Dictionary of banking and finance

  • money supply — N UNCOUNT: usu the N The money supply is the total amount of money in a country s economy at any one time. They believed that controlling the money supply would reduce inflation …   English dictionary

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