Definition: Monetary Supply | Tackle Trading: The #1 rated trading education platform

Monetary Supply

Monetary Supply refers to the total value of monetary assets available in an economy at a specific time.

The monetary assets—also referred to as total circulating money—include printed banknotes, balances held in deposit, checking and saving accounts and other form of liquid assets.

The way the monetary supply is measured can vary from country to country. In the United States the most common data points are: Monetary Base, M1 and M2.

Example #1

Glossary - Monetary Supply example

A monetary base is the total amount of a currency that is either in general circulation in the hands of the public or in the commercial bank deposits held in the central bank’s reserves. This measure of the money supply typically only includes the most liquid currencies. (all data retrieved from FRED, Federal Reserve Bank of St. Louis)</span

Example #2

Glossary - Monetary Supply example-2

Source: usdebtclock.org

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