money supply


Definition of money supply

: the total amount of money available in an economy for spending as calculated by any of various methods (as by adding total currency to funds available in private checking accounts)

Examples of money supply in a Sentence

Recent Examples on the Web After 1971 that view became widely embraced by economists, including Nixon aide Paul Volcker, who eventually crushed inflation as Fed chairman by aggressively tightening the money supply. Daniel Casse, WSJ, "The Future Turns 50 This Year," 1 Jan. 2021 Over the last year, central banks around the world have boosted the money supply in the global economy by $14 trillion. Washington Post, "Five (somewhat) upbeat predictions for 2021," 31 Dec. 2020 That’s given some relief to central bankers who were concerned that Facebook's currency would compete with their ability to control the local money supply. Gregory Barber, Wired, "A Member of the ‘Squad’ Takes on Cryptocurrency," 4 Dec. 2020 These providers are just processing claims on a bank account much like a debit or credit card, but the state token would help Chinese regulators maintain a better grasp of the country’s money supply., "China’s Digital Currency Could Reshape Macau’s Gambling Industry," 1 Dec. 2020 This action allowed the Federal Reserve to increase the money supply and led to significant price increases for consumers. Jon Hartley, National Review, "The Case against Judy Shelton at the Federal Reserve," 16 Nov. 2020 It was viewed as a mechanism against inflation, because the Fed would have limited policy tools to expand the money supply, provide market liquidity or backstop lending or credit markets. NBC News, "Judy Shelton's path to Fed narrows with third GOP dissenter," 16 Nov. 2020 If interest rates someday rise, the Federal Reserve might have to increase the money supply in order to push them back down, which might create inflation. Arkansas Online, "OPINION | NOAH SMITH: Spending may end our recession," 1 Nov. 2020 Inflation-phobes point out that the annual increase in M1, the narrowest measure of the money supply, accelerated to 40% in August from a little over 6% in February. Peter Coy,, "If Google Is Violating Antitrust Laws, What’s the Right Remedy?," 20 Oct. 2020

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'money supply.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of money supply

1871, in the meaning defined above

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The first known use of money supply was in 1871

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Statistics for money supply

Last Updated

17 Jan 2021

Cite this Entry

“Money supply.” Dictionary, Merriam-Webster, Accessed 27 Jan. 2021.

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