silver rhodium jewelry wholesale What does M0, M1, and M2 in the currency level represent

silver rhodium jewelry wholesale

1 thought on “silver rhodium jewelry wholesale What does M0, M1, and M2 in the currency level represent”

  1. wholesale only jewelry texas The division of currency levels: The statistical caliber of currency supply in the world is divided into narrow sense and broad sense, so that the central bank controls the control, specifically M0 = cash (currency); Commercial banks' regular deposits (including regular savings deposits).
    Among them, the monitoring and adjustment of M1 to M3 is adopted by central banks in most countries. For example, the US federal reserve system focuses on M2, and Bank of England pays attention to M3, while the Bank of Japan emphasizes M2 CDS.
    [Expanded information]
    Cur currency layered, also known as the currency level, refers to the statistical caliber of central banks in various countries when determining the currency supply, with the size of the liquidity of financial assets as the standard, and in accordance with its own policies The characteristics and needs of the purpose divide the currency level. The division of currency levels is conducive to the central bank's macroeconomic operation monitoring and monetary policy operations.
    The division of currency levels is not always available. Some developed countries have only divided the currency level since the 1960s. The purpose of the division is mainly to facilitate the control of the central bank to control the supply of currency, and on the issue of the divided standards, economists in various countries have different opinions and claims. To discuss the issue of currency levels, the first thing to understand is the scope of the currency. In many countries' currency statistics indicators, the scope of currency not only includes banknotes and auxiliary currency in circulation, but also including bank deposits, and even valuable securities and electronic currencies. Under normal circumstances, bank deposits, securities, etc. are quite similar to currency definition but excluded from currency definition, which are called quasi -currency, and currency is only part of the currency. It can be seen that the currency contains a wide range, so the currency can be divided into many levels. Regarding the division of currency levels, the differential standards of each country, and the currency level division methods of the same country in different periods may also be different. The basic idea is divided according to the liquidity of the currency.
    This to the division standard of liquidity, it is not difficult to see that the liquidity standards of Chinese currency level division are limited to the domestic liquidity of the financial asset. Some of the differences between China and the United States between China and the United States are the same as the M1 values. Smaller than M1. This difference makes Chinese economic units do not have enough circulation currency, while the United States has ample currency compared to China. The reason for this difference is that Chinese checks cannot be directly exchanged for cash, although it is currency. For another example, under the M2 project, if the M2 is the same, China's savings are very large, but there are very few currencies in circulation and actual economic significance, because China's M2 is occupied by high savings, but almost all the United States is almost all of them. It is M1 (low savings rate in the United States), which is actually M0, that is, most of the cash, and the market has sufficient currencies in the market. However, China is a currency with serious economic significance in the market. This is why the United States has always tended to use M2 to regulate currency.

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