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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.).
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 ...
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.
Keynes coined the term liquidity preference (his preferred name for what is also known as money demand) and explained how monetary policy might affect aggregate demand, at the same time offering clear policy recommendations for an active role of fiscal policy in stabilizing aggregate demand and hence output and employment.
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 ...
Monetary economics is the branch of economics that studies the different theories of money: it provides a framework for analyzing money and considers its functions ( as medium of exchange, store of value, and unit of account), and it considers how money can gain acceptance purely because of its convenience as a public good. [1]
Farhang-e-Asifiya (Urdu: فرہنگ آصفیہ, lit. 'The Dictionary of Asif') is an Urdu-to-Urdu dictionary compiled by Syed Ahmad Dehlvi. [1] It has more than 60,000 entries in four volumes. [2] It was first published in January 1901 by Rifah-e-Aam Press in Lahore, present-day Pakistan. [3] [4]