Monetary Aggregates: Understand the Monetary St
M2, M3 etc
To understand the money supply in the economy, RBI uses monetary aggregates like M
The money supply is the total value of money available in an economy at a point of time.
In India, Reserve Bank of India (RBI)measures the money supply and publishes it on a we
What is meant by Monetary Aggregate?
Monetary aggregates are the measures of the money supply in a country.
Very often, the money supply in the economy is represented using a monetary aggregate
denoted as M3.
There are also different other monetary aggregates.
From 1977 to 1998, RBI used four monetary aggregates – M1, M2, M3 and M4 – to meas
central bank also used the concept of Reserve Money.
However, measuring standards changed in 1998.
Now, the nomenclature is M0, M1, M2, and M3.
To distinguish new aggregates from old aggregates, RBI sometimes mentions new aggre
and NM3.
Old Monetary Aggregates
From 1977, RBI has been publishing four monetary aggregates – M1, M2, M3 and M4 – b
In the new system, reserve money is named M0.
M2 and M4 that included post office savings banks deposits. However, these are not ver
You can read more about the old monetary aggregates in the ClearIAS article on the mon
M2, M3 etc
To understand the money supply in the economy, RBI uses monetary aggregates like M
The money supply is the total value of money available in an economy at a point of time.
In India, Reserve Bank of India (RBI)measures the money supply and publishes it on a we
What is meant by Monetary Aggregate?
Monetary aggregates are the measures of the money supply in a country.
Very often, the money supply in the economy is represented using a monetary aggregate
denoted as M3.
There are also different other monetary aggregates.
From 1977 to 1998, RBI used four monetary aggregates – M1, M2, M3 and M4 – to meas
central bank also used the concept of Reserve Money.
However, measuring standards changed in 1998.
Now, the nomenclature is M0, M1, M2, and M3.
To distinguish new aggregates from old aggregates, RBI sometimes mentions new aggre
and NM3.
Old Monetary Aggregates
From 1977, RBI has been publishing four monetary aggregates – M1, M2, M3 and M4 – b
In the new system, reserve money is named M0.
M2 and M4 that included post office savings banks deposits. However, these are not ver
You can read more about the old monetary aggregates in the ClearIAS article on the mon
