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M0

Source: Investopedia
This Article has been Edited for Accessibility

M0

What is 'M0'

M0 is a measure of the money supply which combines any liquid or cash assets held within a central bank and the amount of physical currency circulating in the economy. In the United Kingdom, the M0 supply is also referred to as narrow money.

Explaining 'M0'

M0 (M-zero) is the most liquid measure of the money supply. It only includes cash or assets that could quickly be converted into currency. This measure is known as narrow money because it is the smallest measure of the money supply.


Additional Resources

  1. International Economics Glossary: M [www-personal.umich.edu]
  2. Eco 340, Chapter 16 Lecture Notes [oswego.edu]
  3. Derivation Of Money Supply Multipliers [sjsu.edu]
  4. International Economics & Foreign Exchange Rates International ... [eml.berkeley.edu]
  5. Money And Inflation [stern.nyu.edu]
  6. Chapter 18: Money, Supply And Money Demand [csub.edu]