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money supply
(redirected from Increase in money supply)

   Also found in: Dictionary/thesaurus, Financial, Wikipedia 0.03 sec.
money supply: see money money, term that actually refers to two concepts: the abstract unit of account in terms of which the value of goods, services, and obligations can be compared; and anything that is widely established as a means of payment.
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money supply

Liquid assets held by individuals and banks. The money supply includes coins, currency, and demand deposits (checking accounts). Some economists consider time and savings deposits to be part of the money supply because such deposits can be managed by governmental action and are nearly as liquid as currency and demand deposits. Other economists believe that deposits in mutual savings banks, savings and loan associations, and credit unions should be counted as part of the money supply. Central banks regulate the money supply to stabilize their national economies. See also monetary policy.



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Interest rate cuts and plans to defuse the credit crisis have led to the biggest increase in money supply among the largest oil consumers since 1998.
To offset that, they then need to sell Yuan via debt - create an obligation that is an offset to that new increase in money supply.
Stimulate activity' Philip Shaw, chief economist with Investec, a specialist banking group, said the increase in money supply "should in principle encourage the banks to lend to private sector agents such as households and businesses, stoking monetary growth and stimulating activity".
 
 
 
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