ECO301824 - Not directly money but liquid assets M1 stock...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
ECO 302 8/24/11 Money supply, Real GDP, Prices, Money Exchange of one…a medium of exchange Storage of value Yap Stone Money Monetary Definitions: M1 –Currency, checkable deposits, traveler’s checks M2 –M1+, savings accounts, small time deposits, and retail money market mutual funds A broader measure of money, stores of value, harder to get money out of, money market mutuals are from a retail vendor….not a bank
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Not directly money but liquid assets M1 stock has increased at a more volatile but steady rate than currency Logarithmic graphs: same slop -> same growth rate Levels graph: same slope -> same absolute change M1 and M2 Log Graphs, same slope same growth rate Make growth rates comparable look at annual rates Month to month growth rates are much more volatile First quiz this weekend...
View Full Document

This document was uploaded on 11/02/2011 for the course ECO 301 at Miami University.

Ask a homework question - tutors are online