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money supply
(redirected from Money in circulation)

   Also found in: Dictionary/thesaurus, Financial, Wikipedia 0.01 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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This also has the potential to stoke inflationary expectations, by increasing the money in circulation and hiking the people's purchasing power.
Deflation appears where the amount of money in circulation is smaller than the quantity of goods and services offered in the market and in such a situation prices drop.
Bank lending to private borrowers in the eurozone slowed sharply in March and growth of the amount of money in circulation also dropped, the European Central Bank said on Wednesday.
 
 
 
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