Editing Money supply (section)

==National definitions of "money"==
===East Asia===
====Hong Kong====

The [[Hong Kong Basic Law]] and the [[Sino-British Joint Declaration]] provides that Hong Kong retains full autonomy with respect to currency issuance. Currency in Hong Kong is issued by the government and three local banks under the supervision of the territory's ''de facto'' central bank, the Hong Kong Monetary Authority. Bank notes are printed by [[Hong Kong Note Printing]].

A bank can issue a Hong Kong dollar only if it has the equivalent exchange in US dollars on deposit. The currency board system ensures that Hong Kong's entire monetary base is backed with US dollars at the linked exchange rate. The resources for the backing are kept in Hong Kong's exchange fund, which is among the largest official reserves in the world. Hong Kong also has huge deposits of US dollars, with official foreign currency reserves of 331.3 billion USD {{as of|September 2014|lc=y}}.<ref>{{cite web|url=http://www.hkma.gov.hk/eng/key-information/press-releases/2014/20140905-3.shtml|publisher=Hong Kong Monetary Authority |title= Hong Kong's Latest Foreign Currency Reserve Assets Figures Released|access-date=November 20, 2016}}</ref>
=====Currency peg history=====
{{Main article|Hong Kong dollar}}
[[File:HKD vs USD over the year.svg|thumb|right|250px|HKD vs USD over the year]]
Hong Kong's [[exchange rate regime]] has changed over time.
* 1967: [[1967 sterling devaluation|Sterling was devalued]], the [[Fixed exchange rate system|peg]] was increased from 1 shilling 3 pence (£1 = HK$16) to 1 shilling 4½ pence (£1 = HK$14.5455). Valued in USD, the currency went from US$1 = HK$5.71 to US$1 = HK$6.06
* 1972: pegged to the US dollar, US$1 = HK$5.65
* 1973: US$1 = HK$5.085
* 1974 to 1983: The Hong Kong dollar was [[Floating exchange rate|floated]]
* October 17, 1983: Pegged at US$1 = HK$7.80 through the currency board system
* May 18, 2005: A lower and upper guaranteed limit are in place at 7.75 to the US dollar. Lower limit was lowered from 7.80 to 7.85, between May 23 and June 20, 2005. The Monetary Authority indicated this was to narrow the gap between interest rates between Hong Kong and the US, and to avoid the HK dollar being used as a proxy for speculative bets on a [[renminbi]] revaluation.

====Japan====
[[File:Money supply of japan.gif|thumb|[[Japan]]ese money supply (April 1998 – April 2008)]]
The [[Bank of Japan]] defines the monetary aggregates as:<ref>{{cite web |url=http://www.boj.or.jp/en/type/exp/stat/data/exms01.pdf |page=11 |publisher=Bank of Japan }}{{Dead link|date=August 2024 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>
* '''M1''': cash currency in circulation, plus deposit money
* '''M2 + CDs''': M1 plus [[quasi-money]] and [[certificate of deposit|CDs]]
* '''M3 + CDs''': M2 + CDs plus deposits of post offices; other savings and deposits with financial institutions; and money trusts
* '''Broadly defined liquidity''': M3 and CDs, plus money market, pecuniary trusts other than money trusts, investment trusts, bank debentures, commercial paper issued by financial institutions, repurchase agreements and [[securities lending]] with cash collateral, government bonds and foreign bonds

===Europe===
====Eurozone====
[[File:Money supply Euro.png|thumb|The [[euro]] money supplies M0, M1, M2 and M3, and euro zone GDP from 1980–2021. Logarithmic scale.]]

The [[European Central Bank]]'s definition of euro area monetary aggregates:<ref>{{cite web |url=http://www.ecb.int/stats/money/aggregates/aggr/html/hist.en.html |title=Monetary aggregates |publisher=European Central Bank |access-date=November 20, 2016}}</ref>
* '''M1''': Currency in circulation plus overnight deposits
* '''M2''': M1 plus deposits with an agreed maturity up to two years plus deposits redeemable at a period of notice up to three months.
* '''M3''': M2 plus repurchase agreements plus money market fund (MMF) shares/units, plus debt securities up to two years
====United Kingdom====
[[File:M4 money supply.svg|thumb|M4 money supply of the [[United Kingdom]] 1983–2024. In millions of [[Pound sterling|pounds sterling]].]]

There are just two official UK measures. M0 is referred to as the "wide [[monetary base]]" or "narrow money" and M4 is referred to as "[[broad money]]" or simply "the money supply".
* '''M0''': Notes and coin in circulation plus banks' reserve balance with [[Bank of England]]. (When the bank introduced Money Market Reform in May 2006, the bank ceased publication of M0 and instead began publishing series for reserve balances at the Bank of England to accompany notes and coin in circulation.<ref>{{cite web |url=https://www.bankofengland.co.uk/statistics/details/further-details-about-m0-data |publisher=Bank of England |title=Further details about M0 data |date=November 8, 2018}}</ref>)
* '''M4''': Cash outside banks (i.e. in circulation with the public and non-bank firms) plus private-sector retail bank and building society deposits plus private-sector wholesale bank and building society deposits and certificates of deposit.<ref>{{cite web |url=http://www.bankofengland.co.uk/mfsd/iadb/notesiadb/M4.htm |publisher=Bank of England |archive-url=https://web.archive.org/web/20070809085936/http://www.bankofengland.co.uk/mfsd/iadb/notesiadb/m4.htm |archive-date=August 9, 2007 |title=Explanatory Notes – M4 |access-date=August 13, 2007}}</ref> In 2010 the total money supply (M4) measure in the UK was £2.2 trillion while the actual notes and coins in circulation totalled only £47 billion, 2.1% of the actual money supply.<ref>{{cite book |last1=Lipsey |first1=Richard G. |last2=Chrystal |first2=K. Alec |date=2011 |title=Economics |edition=12th |publisher=Oxford University Press |page=455 |isbn=978-0199563388}}</ref>

There are several different definitions of money supply to reflect the differing stores of money. Owing to the nature of bank deposits, especially time-restricted savings account deposits, M4 represents the most [[Market liquidity|illiquid]] measure of money. M0, by contrast, is the most liquid measure of the money supply.

===North America===
====United States {{anchor|M0|M1|M2|M3}}====<!-- Many pages link to [[Money supply#M0]], ... -->
[[File:US Monetary Base, M1, M2 January 1959 - October 2010.png|thumb|left|794x794px|MB, M1 and M2 from 1959 to 2021 (all shown in billions) [https://fred.stlouisfed.org/graph/?g=JEwV Link]. Note that before April 24, 2020 savings accounts were not part of M1<ref>{{cite web|url=https://fredblog.stlouisfed.org/2021/05/savings-are-now-more-liquid-and-part-of-m1-money/|title=Savings are now more liquid and part of "M1 money" |publisher=St. Louis Federal Reserve Bank}}</ref>]]
[[File:M0-Money supply of the USA.jpg|thumb|left|794x794px|M0, M1 and M3. US-GDP and M3 of Eurozone for comparison. Logarithmic scale.]]
{{clear}}
[[File:Money_supply_during_the_great_depression_era.png|400px|thumb|right| Money supply decreased by several percent between [[Black Tuesday]] and the [[Emergency Banking Act|Bank Holiday in March 1933]] when there were massive [[bank runs]] across the United States.]]
[[File:Inflation M2 CPI.webp|thumb|400px|right| M2 vs [[Consumer price index|CPI]]]]
The United States [[Federal Reserve]] published data on three monetary aggregates until 2006, when it ceased publication of M3 data<ref name="fedM3disc"/> and only published data on M1 and M2. M1 consists of money commonly used for payment, basically [[currency in circulation]] and [[checking account]] balances; and M2 includes M1 plus balances that generally are similar to transaction accounts and that, for the most part, can be converted fairly readily to M1 with little or no loss of principal. The M2 measure is thought to be held primarily by households. Prior to its discontinuation, M3 comprised M2 plus certain accounts that are held by entities other than individuals and are issued by banks and thrift institutions to augment M2-type balances in meeting credit demands, as well as balances in money market mutual funds held by institutional investors. The aggregates have had different roles in monetary policy as their reliability as guides has changed. The principal components are:<ref name="paf">{{cite web|url=http://www.federalreserve.gov/pf/pf.htm |title=''The Federal Reserve – Purposes and Functions'' |publisher=Federalreserve.gov |date=April 24, 2013 |access-date=December 11, 2013}}</ref>

* '''M0''': The total of all physical currency including coinage. M0 = [[Federal Reserve Note]]s + [[United States Note|US Notes]] + [[Coins of the United States dollar|Coins]]. It is not relevant whether the currency is held inside or outside of the private banking system as reserves.
* '''MB''': The total of all physical currency plus [[Federal Reserve Deposits]] (special deposits that only banks can have at the Fed). MB = [[Coins of the United States dollar|Coins]] + [[United States Note|US Notes]] + [[Federal Reserve Note]]s + [[Federal Reserve Deposits]]
* '''M1''': The total amount of M0 (cash/coin) outside of the private banking system{{Clarify|reason=Is this M0 different from the M0 number above? Sounds like M0 above includes reserve balances, M0 here does not?|date=December 2020}} plus the amount of [[demand deposit]]s, [[Traveler's cheque|travelers checks]] and [[Negotiable Order of Withdrawal account|other checkable deposits]] + most [[savings account]]s. 
* '''M2''': M1 + [[money market account]]s, retail [[Money market fund|money market mutual funds]], and small denomination time deposits ([[Certificate of deposit|certificates of deposit]] of under $100,000).
* '''MZM''': 'Money Zero Maturity' is one of the most popular aggregates in use by the Fed because its [[Velocity of money|velocity]] has historically been the most accurate predictor of [[inflation]]. It is M2 – time deposits + money market funds
* '''M3''': M2 + all other [[Certificate of deposit|CDs]] (large time deposits, institutional money market mutual fund balances), deposits of [[eurodollar]]s and [[repurchase agreement]]s.
* '''M4-''': M3 + [[Commercial Paper]]
* '''M4''': M4- + [[Treasury bill|T-Bills]] (or M3 + Commercial Paper + [[Treasury bill|T-Bills]])
* '''L''': The broadest measure of liquidity, that the Federal Reserve no longer tracks. L is very close to M4 + [[Bankers' Acceptance]]
* '''Money Multiplier''': M1 / MB. As of December 3, 2015, it was 0.756.<ref>{{Cite web|title = M1 Money Multiplier|url = https://research.stlouisfed.org/fred2/series/MULT|website = research.stlouisfed.org|date = February 15, 1984|access-date = December 3, 2015}}</ref> While a multiplier under one is historically an oddity, this is a reflection of the popularity of M2 over M1 and the massive amount of MB the government has created since 2008.

Prior to 2020, savings accounts were counted as M2 and not part of M1 as they were not considered "transaction accounts" by the Fed. (There was a limit of six transactions per cycle that could be carried out in a savings account without incurring a penalty.) On March 15, 2020, the Federal Reserve eliminated reserve requirements for all depository institutions and rendered the regulatory distinction between reservable "transaction accounts" and nonreservable "savings deposits" unnecessary. On April 24, 2020, the Board removed this regulatory distinction by deleting the six-per-month transfer limit on savings deposits. From this point on, savings account deposits were included in M1.<ref name="federalreserve.gov"/>

Although the Treasury can and does hold cash and a special deposit account at the Fed (TGA account), these assets do not count in any of the aggregates. So in essence, money paid in taxes paid to the Federal Government (Treasury) is excluded from the money supply. To counter this, the government created the [[Treasury Tax and Loan]] (TT&L) program in which any receipts above a certain threshold are redeposited in private banks. The idea is that tax receipts won't decrease the amount of reserves in the banking system. The TT&L accounts, while demand deposits, do not count toward M1 or any other aggregate either.

When the Federal Reserve announced in 2005 that they would cease publishing M3 statistics in March 2006, they explained that M3 did not convey any additional information about economic activity compared to M2, and thus, "has not played a role in the monetary policy process for many years." Therefore, the costs to collect M3 data outweighed the benefits the data provided.<ref name="fedM3disc"/> Some politicians have spoken out against the [[Federal Reserve|Federal Reserve's]] decision to cease publishing M3 statistics and have urged the U.S. Congress to take steps requiring the Federal Reserve to do so. Congressman [[Ron Paul]] (R-TX) claimed that "M3 is the best description of how quickly the Fed is creating new money and credit. Common sense tells us that a government central bank creating new money out of thin air depreciates the value of each dollar in circulation."<ref>[http://archive.lewrockwell.com/paul/paul319.html What the Price of Gold Is Telling Us]. Lewrockwell.com (April 25, 2006).</ref> Some of the data used to calculate M3 are still collected and published on a regular basis.<ref name="fedM3disc"/> Current alternate sources of M3 data are available from the private sector.<ref name="SgsM3Data">{{cite web |url=http://www.shadowstats.com/alternate_data |title=Alternate data |website=Shadowstats.com}}</ref>

In the United States, a bank's reserves consist of U.S. currency held by the bank (also known as "vault cash"<ref>12 C.F.R. sec. 204.2(k).</ref>) plus the bank's balances in Federal Reserve accounts.<ref>12 C.F.R. sec. 204.5(a).</ref><ref>[http://www.investorwords.com/7260/vault_cash.html What is vault cash? definition and meaning]. Investorwords.com.</ref> For this purpose, cash on hand and balances in [[Federal Reserve]] ("Fed") accounts are interchangeable (both are obligations of the Fed). Reserves may come from any source, including the [[Federal funds|federal funds market]], deposits by the public, and borrowing from the Fed itself.<ref>{{cite web |url=http://research.stlouisfed.org/fred2/series/NFORBRES |title=Net Free or Borrowed Reserves of Depository Institutions (NFORBRES) – FRED |publisher=St. Louis Fed |website=research.stlouisfed.org|date=January 1929 }}.</ref>

As of April 2013, the [[monetary base]] was $3 trillion<ref>{{cite web|title=Aggregate Reserves of Depository Institutions and the Monetary Base – H.3|url=http://www.federalreserve.gov/releases/H3/Current/|publisher=[[Federal Reserve System|Federal Reserve]]|archive-url=https://archive.today/20130616092107/http://www.federalreserve.gov/releases/H3/Current/|archive-date=June 16, 2013|url-status=dead}}</ref> and M2, the broadest measure of money supply, was $10.5 trillion.<ref>{{cite web|title=H.6 Money Stock Measures|url=http://www.federalreserve.gov/releases/h6/current/h6.htm|work=Federal Reserve Statistical Release|publisher=[[Federal Reserve System|Federal Reserve]]|archive-url=https://archive.today/20130616092412/http://www.federalreserve.gov/releases/h6/current/h6.htm|archive-date=June 16, 2013|url-status=dead}}</ref>

===Oceania===
====Australia====
[[File:Australian_Money_Supply.PNG|thumb|Australian money supply 1984–2022]]
The [[Reserve Bank of Australia]] defines the monetary aggregates as:<ref>{{cite web |url=http://www.rba.gov.au/glossary/ |title=Glossary |date=November 11, 2015 |publisher=Reserve Bank of Australia}}</ref>
* '''M1''': [[currency in circulation]] plus bank current deposits from the private non-bank sector<ref>{{cite web |url=https://www.rba.gov.au/publications/bulletin/2019/mar/updates-to-australias-financial-aggregates.html |title=Updates to Australia's Financial Aggregates |date=March 21, 2019 |publisher=Reserve Bank of Australia |last1=Bank |first1=Joel |last2=Durrani |first2=Kassim |last3=Hatzvi |first3=Eden }}</ref>
* '''M3''': M1 plus all other bank deposits from the private non-bank sector, plus bank certificate of deposits, less inter-bank deposits
* '''Broad money''': M3 plus borrowings from the private sector by NBFIs, less the latter's holdings of currency and bank deposits
* '''Money base''': holdings of notes and coins by the private sector plus deposits of banks with the Reserve Bank of Australia (RBA) and other RBA liabilities to the private non-bank sector.

====New Zealand====
[[File:New zealand money supply 1988-2008.jpg|thumb|[[New Zealand]] money supply 1988–2008]]

The [[Reserve Bank of New Zealand]] defines the monetary aggregates as:<ref>[https://www.rbnz.govt.nz/statistics/c50-money-and-credit-aggregates Series description – Monetary and financial statistics]. Rbnz.govt.nz.</ref>
* '''M1''': notes and coins held by the public plus chequeable deposits, minus inter-institutional chequeable deposits, and minus central government deposits
* '''M2''': M1 + all non-M1 call funding (call funding includes overnight money and funding on terms that can of right be broken without break penalties) minus inter-institutional non-M1 call funding
* '''M3''': the broadest monetary aggregate. It represents all New Zealand dollar funding of M3 institutions and any Reserve Bank repos with non-M3 institutions. M3 consists of notes & coin held by the public plus NZ dollar funding minus inter-M3 institutional claims and minus central government deposits

===South Asia===
====India====
[[File:India Money Supply Components--Larger Label Fonts.png|thumb|Components of the money supply of [[India]] in billions of [[Rupee]] for 1950–2011]]

The [[Reserve Bank of India]] defines the monetary aggregates as:<ref>{{cite book |url=http://rbidocs.rbi.org.in/rdocs/Publications/PDFs/80441.pdf |title=Handbook of Statistics on Indian Economy |section=Notes on Tables |page=4}}</ref>
* '''Reserve money''' ('''M0'''): Currency in circulation, plus bankers' deposits with the RBI and 'other' deposits with the RBI. Calculated from net RBI credit to the government plus RBI credit to the commercial sector, plus RBI's claims on banks and net foreign assets plus the government's currency liabilities to the public, less the RBI's net non-monetary liabilities. M0 outstanding was {{INR}}30.297 trillion as on March 31, 2020.
* '''M1''': Currency with the public plus deposit money of the public (demand deposits with the banking system and 'other' deposits with the RBI). M1 was 184 per cent of M0 in August 2017.
* '''M2''': M1 plus savings deposits with post office savings banks. M2 was 879 per cent of M0 in August 2017.
* '''M3''' (the broad concept of money supply): M1 plus time deposits with the banking system, made up of net bank credit to the government plus bank credit to the commercial sector, plus the net foreign exchange assets of the banking sector and the government's currency liabilities to the public, less the net non-monetary liabilities of the banking sector (other than time deposits). M3 was 555 per cent of M0 as on March 31, 2020(i.e. {{INR}}167.99 trillion.)
* '''M4''': M3 plus all deposits with post office savings banks (excluding [[National Savings Certificates (India)|National Savings Certificates]]).<ref>{{Cite web |url=https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=50813 |title=Press Releases of Reserve Bank of India on 16 Dec 2020}}</ref>