Financial aggregates - Distribution analysis

Monetary aggregates are a compilation of various forms of money in circulation in a given country, which serve as the basis for the analysis and monitoring of monetary policy. The division of monetary aggregates depends on their level of liquidity and accessibility to the public and banks. The basic division of monetary aggregates includes three main categories: 1. M0 - monetary base, which includes cash in circulation and reserves of commercial banks at the central bank. 2. M1 - money in circulation, which includes cash in circulation, savings deposits, current accounts, and other current financial assets held by households and businesses. 3. M2 - broad money, which includes M1 plus other financial assets with a higher degree of liquidity, such as short-term securities, government bonds, time deposits, and investment funds. Monetary aggregates M3 and M4 are macroeconomic indicators that refer to different types of money in circulation. They can be described as expressions of the value of money in circulation and bank deposits. M3 includes cash in circulation, money in time deposits, funds in savings accounts, and funds in current accounts. It is the most extensive of all monetary aggregates and includes all forms of money available to households and businesses. M4, on the other hand, includes all components of M3 plus additional forms of financial assets, such as short-term securities, investment funds, or debt securities issued by the public sector. It is an even broader definition of money that also considers other financial instruments. The division of monetary aggregates is essential for analyzing the financial situation and monetary policy of a country. Proper monitoring of these indicators allows for measuring the amount of money in circulation and its impact on the economy.
Monetary aggregates are a compilation of various forms of money in circulation in a given country, which serve as the basis for the analysis and monitoring of monetary policy. The division of monetary aggregates depends on their level of liquidity and accessibility to the public and banks. The basic division of monetary aggregates includes three main categories: 1. M0 - monetary base, which includes cash in circulation and reserves of commercial banks at the central bank. 2. M1 - money in circulation, which includes cash in circulation, savings deposits, current accounts, and other current financial assets held by households and businesses. 3. M2 - broad money, which includes M1 plus other financial assets with a higher degree of liquidity, such as short-term securities, government bonds, time deposits, and investment funds. Monetary aggregates M3 and M4 are macroeconomic indicators that refer to different types of money in circulation. They can be described as expressions of the value of money in circulation and bank deposits. M3 includes cash in circulation, money in time deposits, funds in savings accounts, and funds in current accounts. It is the most extensive of all monetary aggregates and includes all forms of money available to households and businesses. M4, on the other hand, includes all components of M3 plus additional forms of financial assets, such as short-term securities, investment funds, or debt securities issued by the public sector. It is an even broader definition of money that also considers other financial instruments. The division of monetary aggregates is essential for analyzing the financial situation and monetary policy of a country. Proper monitoring of these indicators allows for measuring the amount of money in circulation and its impact on the economy.
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