money supply

noun

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

The central bank must ensure adequate growth in the money supply while capital flows out and the current-account surplus rapidly dries up. John Greenwood, WSJ, "How China Copes With Capital Flight," 19 Nov. 2018 To meet its inflation target of 2%, the central bank has reduced the rate of growth in the money supply from 15% a year in 2013 to just 8% today. John Greenwood, WSJ, "How China Copes With Capital Flight," 19 Nov. 2018 If functioning as an electronic form of gold—not an electronic form of cash—was the original goal, the design of cryptocurrencies would have allowed for an elastic money supply. WSJ, "Can Bitcoin Become a Dominant Currency?," 21 Oct. 2018 Less new lending in many countries might further slow global growth in the money supply, which is already at its weakest since 2009, according to Absolute Strategy Research. Paul J. Davies, WSJ, "Why the Strong Dollar Is Bad for Banks," 10 July 2018 As a result of policy loosening, Mr. Sheng expects the amount of money in circulation to expand, with M2—a measure of the money supply that includes cash and most deposits—growing 8.5% this year, from 8.1% last year. Lingling Wei, WSJ, "China’s Effort to Control Debt Loses Steam," 12 July 2018 Related While credit was unexpectedly high, the data showed the country’s broadest measure of money supply, M2, which includes cash in circulation as well as corporate and household deposits, slowed to a record low of 8% at the end of June. WSJ, "Cash Flows: Beijing Opens the Taps With Rail Projects and More Lending," 13 July 2018 As expenses exceed revenue, the feds can either expand the money supply to pay the bills, thus debasing our currency, or else either raise taxes or cut benefits. WSJ, "Not Much Has Changed With Social Security," 14 June 2018 In the first instance, a full employment objective may be at odds with a Fed attempt to moderate rising inflation, which would likely require increasing interest rates and tighten money supply. WSJ, "The Fed Should Stick to a Goal It Can Meet," 14 June 2018

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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Last Updated

28 Mar 2019

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The first known use of money supply was in 1871

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