Inflation


## 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](/zettelkasten/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](https://en.wikipedia.org/wiki/Money_supply)

## Backlinks
- [Inflation](/zettelkasten/inflation)

#macroeconomics