M1
1
7.9
An amount of money that people can use quickly, like cash and bank account balances
- noun
- Specialized
:
M1
- Disruption would have also occurred if United States authorities had continued to focus on M1 in 1982.
- change in M1
Examples
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The euro area M1 was as follows (all data are in billions):
Blog text (1) -
In the 1980s, Friedman changed his preferred aggregate from M2 to M1 (currency plus demand deposits).
Academic text (2018) -
The Federal Reserve reported an increase in M1, signaling a rise in money available for spending.
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Economists closely monitor M1 as an indicator of liquid money supply in the economy.
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Changes in M1 can affect inflation and economic growth rates significantly.
How Broad
Surface Forms
Etymology
M1 comes from how economists name kinds of 'money': the M stands for 'money' and the number 1 means 'first' or the most 'liquid' kind. So M1 refers to the most ready-to-use money like cash and checking account balances.