Money Supply
Money supply is the total amount of money available in an economy at a given time. It is typically measured by the amount of currency in circulation, as well as the amount of deposits held by commercial banks and other financial institutions. Money supply is an important economic indicator, as it can have a significant impact on inflation, economic growth, and interest rates.
History of Money Supply
The concept of money supply has been around since the early days of economics. In the 18th century, economist Adam Smith wrote about the importance of money supply in his book The Wealth of Nations. He argued that money supply should be managed in order to ensure economic stability. In the 19th century, economist John Stuart Mill wrote about the importance of money supply in his book Principles of Political Economy. He argued that money supply should be managed in order to ensure economic growth.
In the 20th century, economist John Maynard Keynes wrote about the importance of money supply in his book The General Theory of Employment, Interest and Money. He argued that money supply should be managed in order to ensure economic stability and growth. In the 21st century, economists continue to debate the importance of money supply and its impact on the economy.
Comparison of Money Supply
Country | Currency in Circulation (in billions) | Deposits Held by Banks (in billions) |
---|---|---|
United States | $1,845 | $14,890 |
Japan | $1,717 | $9,945 |
China | $1,717 | $7,845 |
Germany | $1,072 | $4,845 |
Summary
Money supply is an important economic indicator, as it can have a significant impact on inflation, economic growth, and interest rates. The concept of money supply has been around since the early days of economics, and economists continue to debate its importance and its impact on the economy. For more information about money supply, you can visit websites such as the Federal Reserve Bank of St. Louis, the Bank of England, and the European Central Bank.
See Also
- Inflation
- Economic Growth
- Interest Rates
- Currency
- Monetary Policy
- Central Bank
- Banking System
- Gross Domestic Product
- Balance of Payments
- Exchange Rates