Money supply is the total amount of money circulating in the economy at a particular time, often measured on a country-by-country basis.
The reason that money supply is important is that it can drive inflation or deflation, affect the price of investments, influence exchange rates, and in some cases, impact economic and business cycles.
For this reason, money supply is tracked by the government or central bank of each country to keep track of a nation’s economic health and stability. [Read more…] about What is Money Supply? The Answer in Layman Terms.