- 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.
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"?
This model creates an scenario in which a newspaper vendor must decide how many copies of the day's paper to stock in the face of uncertain demand and knowing that unsold copies will be worthless at the end of the day.Zettelkasten, July 22, 2021