Explore the different measures of the money supply, and explain why the different definitions are important.
The response addresses the queries with references.
// In this paper, we will discuss the money supply and its role in the economy. We will also explain different measures of the money supply in the economy. The paper will be helpful in learning the importance of different definitions of distinct measures of money in the economy.//
Money supply measures
At a certain point in time, the amount of money available in the economy is known as money supply or money stock. The data related to the money supply is usually published and recorded by the central bank or government of that nation. There are various measures of the money supply, such as M0, M1, M2, M3, M4, etc. These measures are usually reported by the government of various countries. ...