Broad Money Definition  

Broad money is the definition of the Money Supply which includes a wider scope for the definition of money.

Narrow money is seen as basic amount of notes and coins and operational deposits at Bank of England. Broad money includes notes and coins but also saving accounts and deposits in savings account. Broad money can also include Treasury Bills and gilts. These financial securities are seen as 'near money'

Broad money includes M2, M3, M4

Broad money tends to be less stable than narrow definitions

 

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