the.com/money supply
The total cash and credit sloshing around an economy, printed on faith alone.
means The total stock of money circulating in an economy at a given time — physical cash plus money held in checking accounts, savings, and other liquid forms, usually tracked by central banks in tiers like M0, M1, and M2.
from Not a word with an ancient root to chase — it's a 20th-century economic term, built plainly from 'money' (from Latin 'moneta,' the mint at Rome's temple of Juno Moneta, where coins were struck) and 'supply' (from Latin 'supplere,' to fill up). The phrase itself gained real traction with the rise of monetarism in the mid-1900s, as economists like Milton Friedman pushed the idea that tracking the quantity of money in circulation was the key to understanding inflation and the business cycle. So the word's history is short and institutional, even if the coins behind it have a much older story.
- M0 vs M2
- Cash is a sliver, bank deposits are the ocean
- who creates it
- Mostly commercial banks, by making loans
- central bank role
- Sets the taps, doesn't fill the pool
- inflation link
- Too much supply chasing few goods raises prices