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Money and credit - Ivanov VM

5.2. money supply

The most important quantitative measure of money circulation is the money supply, which is the total volume of purchasing and payment means serving economic circulation and privately owned enterprises of all forms of ownership and the state. For the analysis of quantitative changes in the monetary circulation of a certain date and for a certain period, as well as to develop measures to regulate the rate of increase in the money supply, various indicators - monetary aggregates:

M1 aggregate - includes cash in circulation and money on current accounts;

M2 - M1 plus this time and savings deposits in commercial banks (four years);

M3 comprises aggregate M2 plus savings deposits in the specialized credit institutions;

M4 unit includes M3 plus certificates of deposit of large commercial banks.

In the United States to determine the money supply using four monetary unit in Japan and Germany - three in England and France - two.

The money supply different active money used in the cash and non-cash circulation and passive (accumulation of reserves, balances), which only have the potential to be used in transactions.