)
Fig. 127 Money-supply definitions. Source: Bank of England Quarterly Bulletin, April 2004.
money supply definitions
the definitions of MONEY SUPPLY in terms of their ‘narrowness’ or ‘broadness’.‘Narrow’ definitions include only assets possessing ready LIQUIDITY (that is, assets that can be used directly to finance a transaction - for example, notes and coins). ‘Broad’definitions include other assets that are less liquid but are nonetheless important in underpinning spending (for example, many building society deposits have first to be withdrawn and ‘converted’ into notes and coins before they can be spent).
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005