broad money

Definition

One measure of the money supply that includes M1, plus savings and small time deposits, overnight repos at commercial banks, and non-institutional money market accounts. This is a key economic indicator used to forecast inflation, since it is not as narrow as M1 and still relatively easy to track. All the components of M2 are very liquid, and the non-cash components can be converted into cash very easily.

Use broad money in a sentence

You should try and figure out how much broad money you have so that you know what you can do with it.

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They were given some broad money and that made everyone sort of question what was going on and how things were going to happen.

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Broad money was growing rapidly in most rich countries, with the exception of Japan, until the crisis struck. Growth has since slowed markedly and is still declining in most rich countries.

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broad liquidity broad tape