What is 'M0'
M0 is a measure of the money supply which combines any liquid or cash assets held within a central bank and the amount of physical currency circulating in the economy. In some parts of the world, the M0 supply is referred to as narrow money.
BREAKING DOWN 'M0'
M0 (M-zero) is the most liquid measure of the money supply. It includes coins, cash, and other assets that can be quickly converted into currency. The term narrow money comes from the fact it is the smallest measure of the money supply.
M0 makes up about one-tenth of M1, which includes all other assets that are easily converted into cash such as commercial paper, short-term deposits, and money held in checking accounts. M0 includes money held inside or outside private institutions. M0 is the smallest of the subsets of money supply, which include M0, M1, M2, and M3.
According to data provided by trading economics, M0 reached a record high of 4075024 USD Million in August of 2014, and has averaged 710060.99 USD Million from 1959 until 2017.
-
Narrow Money
Narrow money is a category of money supply; it is physical money ... -
Monetary Aggregates
Broad categories measuring the total value of the money supply ... -
M3
M3 is a measure of money supply that includes M2, large time ... -
Money Supply
The entire stock of currency and other liquid instruments in ... -
M1
A measure of the money supply that includes all physical money, ... -
M2
M2 is a measure of the money supply that includes cash and checking ...
-
Tech
What Is Bitcoin's Intrinsic Value?
What would bitcoin's price look like in the event of widespread adoption? -
Insights
What is Money?
Money: It's a part of everyone's life, and we all want it, but do you know how it gains value and how it was created? -
Insights
The Currency Board: Understanding The Government's Bank
Currency board, central bank - what's the difference? Find out more about this little-known monetary authority. -
Insights
Is U.S. Inflation on the Horizon?
Inflation, or the general price level of all goods and services in an economy, has remained subdued in the years following the Great Recession. Given recent developments, is the U.S. on the verge ... -
Investing
Understanding Financial Liquidity
Understanding how this measure works in the market can help keep your finances afloat. -
Insights
How Does China Manage Its Money Supply?
Here's how the Central Bank of China manages its currency rates and the money supply. -
Insights
Understanding How the Federal Reserve Creates Money
Read about how the Federal Reserve actually targets and creates new money in the economy, and find out why the savings and loans system magnifies this process.
-
What happens when M2 money supply grows faster than the overall economy?
Find out what happens if the total supply of money and money substitutes expands at a faster rate than the productive output ... Read Answer >> -
Three Major Facts How Central Banks Influenced Money Supply
Central banks use several different methods to increase (or decrease) the amount of money in the banking system. Learn three ... Read Answer >>