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.
A series of measures of the values of currency on issue, current deposits with banks, other deposits with banks, plus borrowings from the private sector by non-bank financial institutions (NBFIs) less currency and bank deposits by NBFIs. Components consist of: 'M1' defined as currency plus bank current deposits of the private non-bank sector; 'M3' defined as M1 plus all other bank deposits of the private non-bank sector; 'Broad money' defined as M3 plus borrowings from the private sector by NBFIs, less the latter's holdings of currency and bank deposits; 'Money base' defined as holdings of notes and coins by the private sector plus deposits of banks with the Reserve Bank of Australia (RBA) and other RBA liabilities to the private non-bank sector.
See money supply.
Aggregate measures through which the Federal Reserve monitors the nation's monetary assets: M1, M2, and M3.