money supply: meaning, definition, pronunciation and examples
C1Formal, Technical
Quick answer
What does “money supply” mean?
The total amount of money available in an economy at a given time.
Audio
Pronunciation
Definition
Meaning and Definition
The total amount of money available in an economy at a given time.
The entire stock of currency and other liquid instruments circulating in an economy, typically measured and categorized by central banks into aggregates like M0, M1, M2, etc., influencing interest rates and inflation.
Dialectal Variation
British vs American Usage
Differences
No significant differences in meaning or usage between British and American English.
Connotations
Identical technical connotations in both economics and central banking.
Frequency
Equally frequent in financial and economic discourse in both varieties.
Grammar
How to Use “money supply” in a Sentence
The government controls the money supply.An increase in the money supply can lead to inflation.M2 is a measure of the money supply.Vocabulary
Collocations
Examples
Examples of “money supply” in a Sentence
verb
British English
- The Bank is expected to money-supply-targeting in its next report. (Noun used attributively with gerund)
- They discussed how to effectively money-supply-manage. (Noun used attributively with verb)
American English
- The Fed is focused on money-supply growth. (Noun used attributively)
- Analysts money-supply-watch closely. (Noun used attributively with verb)
adjective
British English
- The money-supply figures were released today. (Noun used attributively)
- It's a core money-supply concept. (Noun used attributively)
American English
- The money-supply data surprised markets. (Noun used attributively)
- A money-supply target was announced. (Noun used attributively)
Usage
Meaning in Context
Business
Discussed in financial news regarding central bank policies and interest rates.
Academic
A core concept in macroeconomics and monetary theory.
Everyday
Rarely used; might appear in simplified news reports about the economy.
Technical
Precisely defined and measured by central banks (e.g., 'seasonally adjusted M2 money supply').
Vocabulary
Synonyms of “money supply”
Strong
Neutral
Weak
Vocabulary
Antonyms of “money supply”
Watch out
Common Mistakes When Using “money supply”
- Using it to refer to personal finances (e.g., 'My money supply is low this month' – incorrect).
- Treating it as a countable noun (e.g., 'money supplies' is very rare; usually uncountable or used with 'the').
FAQ
Frequently Asked Questions
No. Cash is only one component (part of 'M0' or 'M1'). The money supply includes bank deposits and other liquid assets.
Primarily a nation's central bank (e.g., the Bank of England, the Federal Reserve), through monetary policy tools.
It can lead to inflation, where too much money chases too few goods and services, causing prices to rise.
They are standard categories ('aggregates') for measuring the money supply, with M1 being the most liquid (cash, checking accounts) and M2/M3 including less liquid forms like savings accounts and money market funds.
The total amount of money available in an economy at a given time.
Money supply is usually formal, technical in register.
Money supply: in British English it is pronounced /ˈmʌni səˌplaɪ/, and in American English it is pronounced /ˈmʌni səˌplaɪ/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “printing money (related concept of expanding money supply)”
Learning
Memory Aids
Mnemonic
Think of the economy as a bathtub. The 'money supply' is the total amount of water (money) in the tub, which the central bank can adjust by turning the taps (monetary policy).
Conceptual Metaphor
MONEY IS A LIQUID (circulating, supplied, flowing through the economy).
Practice
Quiz
What is 'M1' an example of?