MEASURES OF MONEY SUPPLY: AUSTRALIA PDF

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Measures of money supply...

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MEASURES OF MONEY SUPPLY: AUSTRALIA M0 (Money base/High Powered Money) = sum of currency in circulation, deposits of the banks with the Reserve Bank of Australia and other RBA liabilities with, or to, the private sector M1 = currency plus total current deposits with banks, excluding commonwealth and state government deposits and inter-bank deposits; M2 is no longer used in Australia (and M1 is also rarely referred to); M3 = M1 plus other deposits (certificates of deposit and term deposits) with banks. M3 is therefore currency plus total bank deposits of the private non-bank sector, excluding government and inter-bank deposits. M3 - is defined as currency plus bank deposits of the private non-bank sector. Broad money = M3 plus borrowings from the private sector by non-bank financial intermediaries (including cash management trusts) less their holdings of currency and bank deposits....