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There are several standard measures of the money supply, [4] classified along a spectrum or continuum between narrow and broad monetary aggregates. Narrow measures include only the most liquid assets: those most easily used to spend (currency, checkable deposits). Broader measures add less liquid types of assets (certificates of deposit, etc.).
Economists employ different ways to measure the stock of money or money supply, reflected in different types of monetary aggregates, using a categorization system that focuses on the liquidity of the financial instrument used as money. The most commonly used monetary aggregates (or types of money) are conventionally designated M1, M2, and M3.
Divisia monetary aggregates are maintained for internal use by the European Central Bank, the Bank of Japan, the Bank of Israel, and the International Monetary Fund. Recent empirical research has explored the potential advantages of Divisia monetary aggregates compared to the federal funds rate in monetary policy shock analysis.
Studies using theoretically-grounded Divisia monetary aggregates, which weight monetary components based on their "monetary services" or liquidity properties, have found considerably more stable money demand relationships. For instance, Belongia and Ireland demonstrated that money demand equations using Divisia measures remain stable even ...
David Romer notes in his graduate textbook "Advanced Macroeconomics" that it is difficult for central banks to control broad monetary aggregates like M2. [ 25 ] : 607–608 Monetarist theory, which was prominent during the 1970s and 1980s, argued that the central bank should concentrate on controlling the money supply through its monetary ...
The European Central Bank considers all monetary aggregates from M2 upwards to be part of broad money. [2] Typically, "broad money" refers to M2, M3, and/or M4. [1]The term "narrow money" typically covers the most liquid forms of money, i.e. currency (banknotes and coins) as well as bank-account balances that can immediately be converted into currency or used for cashless payments (overnight ...
In monetary economics, the money multiplier is the ratio of the money supply to the monetary base (i.e. central bank money). If the money multiplier is stable, it implies that the central bank can control the money supply by determining the monetary base.
It is the most comprehensive dictionary in the history of Urdu language. [citation needed] It is published by the Urdu Lughat Board, Karachi. The dictionary was edited by the honorary director general of the board Maulvi Abdul Haq who had already been working on an Urdu dictionary since the establishment of the Urdu Dictionary Board, Karachi ...