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QuestionWhat is the money stock?
The money stock refers to the total amount of money supplied by the financial sector to the entire economy. Specifically, it is the aggregate amount of money, including cash and deposit money, held by money holders such as nonfinancial corporations, individuals, and local governments (economic entities excluding financial institutions and the central government).
The range of financial assets included in the money stock statistics varies by time and country. In this sense, the statistics are not characterized by a set of definite standards. Currently in Japan, four money stock indices, which are classified by the type of money covered in the statistics -- namely, M1, M2, M3, and L (broadly-defined liquidity) -- are compiled and released. For more information, please visit the links below.