understanding financial jargon
The money supply is the amount of money available in the economy. There are a number of ways of measuring this. M0 includes the most liquid forms of money such as notes, coins and deposits held by non-commercial banks at the Bank of England. M4 (a widely quoted measure) comprises of M0 plus private sector bank deposits and short-term money market instruments. When there is more money circulating in the economy it will tend to compete for limited goods and services, and hence lead to inflation. See also Velocity of Money
What to do if you need more help
If you need more help with your specific commercial loan, mortgage or insurance requirement please speak to a professional financial adviser.
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