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Money supply ("monetary aggregates", "money stock"), a macroeconomic concept, is the quantity of money available within the economy to purchase goods, services, and securities.

Introduction


The monetary sector, as opposed to the real sector, concerns the money market. The same tools of analysis can be applied as to other markets: supply and demand result in an equilibrium price (the interest rate) and quantity (of real money balances).

When thinking about the "supply" of money, it is natural to think of the total of banknotes and coins in an economy. That, however, is incomplete. In the United States, coins are minted by the United States Mint, part of the Department of the Treasury, outside of the Federal Reserve. Banknotes are printed by the Bureau of Engraving & Printing on behalf of the Federal Reserve as symbolic tokens of electronic credit-based money that has already been created or more precisely, issued by private banksThe term private bank is here used as a bank that is not government owned, not as a bank for high net worth individuals. through fractional reserve banking.

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