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