 |
M3
Money Supply |
|
 |
Measures
the change in outstanding currency. The larger the percentage
of outstanding currency the greater the deflationary pressure
on the economy. Deflation has a negative effect on a currency’s
value. |
 |
M1
= Currency in circulation + overnight deposits M2 = M1 + deposits with agreed maturity up to 2 years + deposits redeemable up to 3 months notice M3 = M2 + Repurchase agreements + money market fund shares/ units and money market paper + debt securities issued up to 2 years. |
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