what we call the money supply is the
total amount of money available in the
economy at any time The Economist's
calculate the money supply in different
ways depending on just how liquid
meaning how available to spend it is one
way of calculating the money supply is
called m1 m1 consists of cash held by
the public plus funds and accounts on
which demand withdrawals can be made
plus traveler's checks m2 is m1 plus
instruments and accounts that are
slightly less liquid including savings
accounts certificates of deposit and
money market mutual funds