Definitions for "Monetary aggregates"
Measures of the amount of money in circulation or in accounts with financial institutions.
a monetary aggregate can be defined as the sum of currency in circulation plus outstanding amounts of certain liabilities of financial institutions that have a high degree of "moneyness" (or liquidity in a broad sense). The narrow monetary aggregate M1 has been defined by the Eurosystem as currency in circulation plus euro area residents' (other than central government) holdings of overnight deposits with euro area money-issuing institutions. The monetary aggregate M2 comprises M1 plus deposits with an agreed maturity of up to two years and deposits redeemable at notice of up to three months. The broad monetary aggregate M3 includes M2 plus repurchase agreements, money market fund shares/units and money market paper and debt securities with a maturity of up to two years. The Governing Council has announced a reference value for the growth of M3.
Measures of a country's money supply. M1 consists of funds that are readily available for spending, including cash and checking accounts, and currency. M2 consists of M1 and all savings or short-term deposits. It also includes certain short-term assets such as the amounts held in money-market mutual funds. M3 is the total of M1 and M2 as well as the assets and liabilities of banks. Also called money-supply measures.