Tracking Money Supply As A Percentage of the Gross Domestic Product (GDP)
There’s a lot of money in the world, but not all of it can be easily defined as “money.” Just where the money is and who has it is a complicated issue. The amount of money in your pocket is one form, but the total money supply is much more than that. Where does the world’s money supply come from and where does it go? This is more complex than most people realize.
How Does Your Country Stack Up?
How does your country compare to other countries in terms of money? The amount of quasi-money in each country when measured as a percentage of a country’s Gross Domestic Product (GDP) is pretty telling. Review this graphic and see how your country rates. If you know someone from a country on the top or bottom lists, forward the graphic to them and let them know about it. Depending on where their country falls, it may be time to gloat or to pretend not to be jealous.
Where are the top and bottom countries located? Are they countries that are typically thought of as being rich and poor, or do they come straight out of left field for a sneak attack? There are certainly some countries in there that will surprise you as well as some that won’t. Take a look for yourself and see where the wealth of the world lies.
Quasi Money or Near Money
If you want to measure how much money a country has, there is more to consider than just how the amount of printed currency within that country. If you think about how much money you have, it’s likely a lot more than just the cash you have on hand. You may have bank accounts, checks and other forms of money that factor into how much money you have. The same is true for countries.
How much money a country can get pretty complicated, but there is a way to figure out each country’s quasi-money. Quasi-money may also sound like our paychecks these days, but what it refers to is actually a pretty neat assessment of the money that a country really has.
Types of money in the money supply
Type’s money in the overall supply includes: Broad Money, Money Zero Maturity, the Monetary Base, and Money and Close Substitutes. These are categorized further, from M0-M4 depending on how they are measured. For example, the currency used every day is M1. M1 includes Checking Accounts, M2 includes small savings accounts and time deposits (like CD’s). M3 includes large amounts of cash, deposits, institutional deposits, and other large liquid assets.