M3 - Definition

This is the broadest measure of money; it is used by economists to estimate the entire supply of money within an economy. It includes M2 as well as all large time deposits, institutional money-market funds, short-term repurchase agreements, along with other larger liquid assets. A common solution often used to fight Inflation is to decrease the Money Supply. In effect, the Federal Reserve stops printing money. The goal of reducing the money supply, generally, is to lower inflation and prices.



Terms near "M3"

Maastricht Treaty
Macaroni defense
Macau Pataca
Macaulay Duration
MACD
MACD Histogram
Macedonia Denar
Macro risk
Macro-based
Macro-hedge
Ready to Trade!
First you'll need an online broker. See how much you can save by visiting Forexbite Broker Center.
Advertisement

M3 - Related articles & news

Featured
Top 5 factors that affect exchange rates ...

There are many factors that affect exchange rates of currencies. However some are more important in currency trading than others. These are; Interest and Inflation rates, Trade balance, Currency market speculation, Foreign investment and Central bank market intervention. Learn how to use these factors in your forex tra ...

Forex Navigation