Broad money

Updated: Aug 20, 2021

A relatively inclusive definition of money. This applies to definitions such as M2, which includes building society deposits, or M3, which includes interest-bearing bank deposits. It does not apply to M0 or M1 Broad money measures of the money supply tend to be less stable relative to gross domestic product than more narrow measures. See also narrow money.

Reference: Oxford Press Dictonary of Economics, 5th edt.

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