What is money for money?

Shares money is the total amount of money available in the economy of a particular country or region at a given time. Monitoring the level of money shares is important for the creators of economic policy and financiers, as it may indicate the upcoming changes in the economy. Shares of money is not just government paper and money for coins. It may also include money substitutes such as loan accounts, travel checks and precious metals.

In the modern financial sector, there are several ways of measurement of money. These are known as cash units. Each has a different set of parameters defining what it should and what should not be calculated as part of the shares. M0, a distinctive Mero, is the narrowest definition. It includes only physical cash and mining available in the economy. With the many world's digitized banking system, the M0 is an impractical definition that is rarely used, with the exception of theoretical cases.

The early used monetary aggregates are M1 and M2. M1 includes cash and coins and adds any money whoThey are stored to be easily available, for example when checking accounts or travel controls. Slightly wider definitions, M2 includes everything in M1 and adds money stored on short -term savings accounts, deposit certificates and market market share.

Data on changes in money units M1 and M2 are published every week by the main financial institutions of different national economies. In 1943, the Federal Reserve System published its first statistics of money aggregates. Many countries have published statistics for decades before the first international standards for calculating and publishing monetary aggregates in 2000 by the International Monetary Fund (IMF). The IMF is an organization consisting of 187 countries that cooperate on the creation of cooperation stability among the world's economies.

Experts in the financial sector monitor money for money as a way to predict changes in the economy. AfterSuns of the country's cash supply can affect inflation and price level. For example, many economists agree that a rapid increase in money supply is often accompanied by rapid inflation. A well -known example appeared in Germany after World War II. The Germans of Germany issued a huge amount of money, partly to help finance war compensation required from the country. Prices were rising and the economy has become unstable.