“One of the most important concepts in economic theory is the quantity of money. However, when going from theory to practical application, things get messy. In the real world, it’s not obvious how to count up the amount of “money” in the economy at any given time.
Because of this ambiguity, economists have developed several different “monetary aggregates,” i.e., different definitions that include and exclude various components that are more or less related to our intuitive notion of what “money” is. In the present article I’ll outline the major aggregates and then relate them to the “Austrian money supply” definition devised by Murray Rothbard and Joe Salerno.” Read more.
“Lost in a Maze of Monetary Aggregates”
Mises Daily, February 14, 2011.
Via the Ludwig von Mises Institute.
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