Pedro Arantes
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Money Supply

In macroeconomics, money supply is the quantity of the money in circulation that an economy have in a point of time.
#economics
Zettelkasten, February 18, 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

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