Home > Terms > Macedonian (MK) > парична маса
парична маса
The amount of money available in an economy. In the heyday of monetarism in the early 1980s, economists pounced upon the monthly (in some countries, even weekly) money-supply numbers for clues about future inflation. Central banks aim to manage demand by controlling the supply of money through open-market operations, reserve requirements and changing the rate of interest (to be exact, the discount rate). One difficulty for policymakers lies in how to measure the relevant money supply. There are several different methods, reflecting the different liquidity of various sorts of money. Notes and coins are completely liquid; some bank deposits cannot be withdrawn until after a waiting period. M3 (M4 in the UK) is known as broad money, and consists of cash, current account deposits in banks and other financial institutions, savings deposits and time-restricted deposits. M1 is known as narrow money, and consists mainly of cash in circulation and current account deposits. M0 (in the UK) is the most liquid measure, including only cash in circulation, cash in banks’ tills and banks’ operational deposits held at the Bank of England. Although it is a poor predictor of inflation, monetary growth can be a handy leading indicator of economic activity. In many countries, there is a clear link between the growth of the real broad-money supply and that of real GDP.
- Part of Speech: noun
- Synonym(s):
- Blossary:
- Industry/Domain: Economy
- Category: Economics
- Company: The Economist
- Product:
- Acronym-Abbreviation:
Other Languages:
Member comments
Terms in the News
Featured Terms
електронски цигари
E-cigarettes are battery-operated cigarettes. Depending on the version and brand, these cigarettes allow users to inhale nicotine vapor or a ...
Contributor
Featured blossaries
rufaro9102
0
Terms
41
Blossaries
4
Followers
International Accounting Standards
Browers Terms By Category
- Poker(470)
- Chess(315)
- Bingo(205)
- Consoles(165)
- Computer games(126)
- Gaming accessories(9)
Games(1301) Terms
- Zoological terms(611)
- Animal verbs(25)
Zoology(636) Terms
- Economics(2399)
- International economics(1257)
- International trade(355)
- Forex(77)
- Ecommerce(21)
- Economic standardization(2)
Economy(4111) Terms
- Home theatre system(386)
- Television(289)
- Amplifier(190)
- Digital camera(164)
- Digital photo frame(27)
- Radio(7)
Consumer electronics(1079) Terms
- ISO standards(4935)
- Six Sigma(581)
- Capability maturity model integration(216)