Broad money is the money held by households and firms, as opposed to the central-bank money held by banks. It consists mainly of bank deposits and similar liabilities.

Broad money is created when banks lend and destroyed when loans are repaid. It is measured through aggregates such as M1 and M2, whose definitions vary by country.[1]

The Federal Reserve's H.6 release reports the U.S. aggregates and their components.[2]

Sources

  1. Bank of England. Money in the modern economy: an introduction. Bank of England Quarterly Bulletin. 2014. View source Accessed Nov 11, 2026.
  2. Board of Governors of the Federal Reserve System. Money Stock Measures (H.6). Federal Reserve. 2026. View source Accessed Nov 11, 2026.