How Much Money Is In The System?

How Much Money Is In The System? by Bargain Value

Some people like to hold money in bonds or time deposits. Others prefer mobility over interest and they choose cash. Today, we will learn about how to predict moves of the stock index, looking at which one of this two group is becoming stronger.

We can divide money supply in a few groups:

• Quick group – contains the money, which we can spend almost immediately. Cash and call deposits,
• Average group – contains short-term deposits and other instruments, which do not bind our capital for more than 3 months,
• Slow group – contains long-term deposits and bonds, which bind our capital for even 2 years.

National banks(e.g. Bank of England) count how much money is...