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money supply |
Also found in: Financial, Wikipedia, Hutchinson | 0.06 sec. |
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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. ..... Click the link for more information. . money supplyLiquid 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. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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That is, assume that the central bank is uncertain about the parameters of the money demand function. In his paper "Narrow Money, Broad Money, and the Transmission of Monetary Policy," Marvin Good-friend develops a framework that integrates broad money demand with loan production, asset pricing, and arbitrage between banking and asset markets in order to explore the supply of and demand for broad money and the potential role of broad money in monetary transmission. Supra note 6, ("Potential macroeconomic consequences of money laundering include, but are not limited to: inexplicable changes in money demand, greater prudential risks to bank soundness, contamination effects on legal financial transactions, and greater volatility of international capitol flows and exchange rates due to unanticipated cross-border asset transfers. |
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Money demand
