Money Supply

In macroeconomics, money supply is the quantity of the money in circulation that an economy have in a point of time.

#macroeconomics

Zettelkasten, February 18th, 2021.

Notes

In macroeconomics, the money supply is the quantity of money in circulation that an economy has at a time.
Money supply can be defined as the quantity of the currency in circulation.
- Each country may use the definition that best makes sense to them.
It affects the inflation.
- If the money supply rises, inflation rises.
- If the money supply decreases, inflation decreases.

Questions

Why does inflation increase/decrease if the money supply increase/decrease?
Are there other definitions of the money supply besides "quantity of the money in circulation"?

References

Wikipedia. Money supply

Backlinks

Inflation

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