Monetary aggregates

Monetary aggregates,

Definition of Monetary aggregates:

  1. A measure of the amount of money in circulation within a country or economic sector.

  2. M0: Physical paper and coin currency in circulation, also known as the monetary baseM1: All of M0, plus traveler's checks and demand depositsM2: All of M1, money market shares, and savings deposits.

  3. Various measures of a countrys money supply, such as M1, M2, M3, M4, M5.

  4. Money aggregates are broad categories that measure the money supply in an economy. In the United States, labels are attributed to standardized monetary aggregates:.

How to use Monetary aggregates in a sentence?

  1. The Federal Reserve uses money aggregates as a metric for how open-market operations affect the economy.
  2. Central banks usually define and monitor several monetary aggregates.
  3. Monetary aggregates are used to measure the money supply in a national economy.
  4. The monetary base is an aggregate that includes the total supply of currency in circulation plus the stored portion of commercial bank reserves within the central bank.
  5. A monetary aggregate is a formal way of accounting for money, such as cash or money market funds.

Meaning of Monetary aggregates & Monetary aggregates Definition