MONEY SUPPLY

Total stock of currency and other liquid instruments in a country’s economy at a given time. It can comprise of cash, coins, and balances being held in checking and savings accounts. Economists assess the money supply and refine policies around it by controlling interest rates, and increasing or decreasing the amount of fund circulating in the economy. The data is gathered, recorded, and published periodically, usually by a nation’s government or central bank. Public and private sector analysis is performed because of the money supply's potential impacts on price level, inflation, and business cycle. In the United States, the Federal Reserve policy is the most significant deciding factor in the money supply.

Also known as money stock.

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