Money supply is a way to measure currency in circulation. Its growth rate relative to inflation and GDP can indicate monetary inflation or deflation. According to the Austrian school of economics inflation is a result of a strongly rising monetary base as this process creates more money than the expansion of the economy would require.
Money supply is divided into different categories according to the size and maturity of deposits. There is no single international convention defining monetary aggregates from M0 to M4 which vary between countries. Empirical evidence has shown a strong correlation between the growth of money in circulation and rising prices.
The Federal Reserve ceased to publish M3 figures in February 2006. Chairman Ben Bernanke later told policymakers that the costs outweighed the benefits. The total savings effect of $1.5 million came to 0.00000699% of the Fed's annual net income in 2005.
The ECB publishes a monthly report on the growth of money supply in the Eurozone.
In the UK M0 is referred as "narrow money" and M4 as "broad money" or simply "the money supply."
As defined by the Reserve Bank of Australia.
As defined by the Bank of Japan (BoJ.)