Các quốc gia cá nhân và các ngành công nghiệp phải có giới hạn sở hữu hoặc tripwires của họ. Giới hạn cũng nên tồn tại theo địa lý và loại chỉ hàng đầu của công ty nhưng tất cả các nhà quản lý dòng cũng phải chịu trách nhiệm cho việc kiểm soát vị trí của họ thông qua việc tài tính toán tương tác. | Managing Liabilities MS MB v There are different metrics for money supply from M1 to M9. M1 is the more limited definition of money supply representing the money that can be spent right away it represents the gross sum of all currency and demand deposits held by every consumer and business in a country. Checking account deposits are about three-quarters of M1 hence M1 is much larger than M0. The Fed targeted M1 for many years. Then it switched to M2 which is equal to M1 plus time deposits in the banking system. Like M1 M2 varies over time in relation to reserve bank policies investment policies propensity to consume and other factors. As Exhibit shows from January to March 2001 the money supply exploded rising at a 12 percent annual rate. The last time M2 surged at a similar pace was in late 1998 in the aftermath of the Russian bond default and the collapse of Long Term Capital Management. Other central banks use different metrics. For instance the German Bundesbank tracks M3 which includes currency in circulation demand deposits with banks demand deposits with postal giro system time deposits and savings deposits. No matter which metrics the monetary authorities follow rapid growth in supply of money can lead to inflation. Money supply is increased by increasing either the monetary base or the velocity of circulation of money or both. Not only the reserve bank but also the banking sector as a whole impacts on the money supply. The quantity theory of money links money supply to gross national product GNP GNP P Q where P price level Q output of the economy Exhibit The Rapid Growth of M2 in a Matter of Three Months January to March 2001 RATE OF M 2 GROW TH NOTE DIFFERENCE January 1 2001 M arch 1 2 001 146 Market Liquidity and the Control of Risk Money supply impacts on the output of the economy as well as on the price level. The algorithm to remember is that credit and therefore debit and money supply grow together. When added to the monetary base the banking
