M 2 Money Supply. Expansion of the money supply can cause inflation but not always. People who own large businesses and buildings don't care, they will increase their prices.
It counts as money not only those financial instruments that generally act as a medium of exchange but also act as a store of value, another important function of money.
S. currency and balances held in checking accounts and savings accounts are included in many measures of the money supply..
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To provide an idea of what these amounts sound like, according to the Federal Reserve Bank's measure of the U. This has started to show up in the highly doctored CPI. Expansion of the money supply can cause inflation but not always.