Money supply

The money supply is the stock of money in an economy at a point in time. Because money takes different forms, statisticians define aggregates: base money (M0), transaction money (M1), and broader money (M2).

The aggregates are useful indicators, but they are not directly controlled by the central bank. Bank lending creates deposits, and the central bank supplies reserves to meet demand at its policy rate.^[1]

Definitions vary across countries and are revised over time. The IMF provides a common statistical framework, but national measures still differ.^[2]