Divisia money and Mid-sized companies: Difference between pages

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An index of [[broad money]] [[money supply]] growth usually published as year over year percentage change.  
Smaller, large companies.


Unlike other measures, it weights the growth of components by their ease of use in transactions - money's role as a medium of exchange. The calculation depends on the detailed definition and methodology followed by the country in which it is calculated.  
Often firms are classified as small, medium or large. Different definitions of the categories apply for different purposes, in different jurisdictions and in formal and informal use.


The Bank of England, for example, calculates Divisia money as a weighted average of the growth rates of the UK [[M4]] component assets and publishes it regularly as part of Bankstats (Monetary & Financial Statistics).
A common grouping is [[Small and Medium-sized Enterprises]] (SMEs). They may benefit from easier financial reporting requirements, tax provisions or eligibility for various government-provided support.


Divisia money measures are intended to be more suitable for use in near-term economic forecasting than the simple monetary aggregates.  
Most firms are small, some are medium-sized and few are large. But the size of firms in the large category vary greatly. It has become useful to distinguish smaller large companies for some purposes.


For example, in European Union usage, SMEs do not exceed €43m in turnover while large companies turn over many billions. Opportunities of many kinds vary materially with a firm's size, for example, the available range of investment and financing opportunities.


== See also ==


* [[Index]]
No doubt terminology will continue to develop until its use in law and regulation makes further change more difficult or confusing.


 
[[Category:The_business_context]]
==Other links==
 
*  [http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/qb050103.pdf Discussion of Divisia money.]
 
[[Category:Planning_and_projects]]
[[Category:Context_of_treasury]]

Revision as of 11:17, 16 July 2019

Smaller, large companies.

Often firms are classified as small, medium or large. Different definitions of the categories apply for different purposes, in different jurisdictions and in formal and informal use.

A common grouping is Small and Medium-sized Enterprises (SMEs). They may benefit from easier financial reporting requirements, tax provisions or eligibility for various government-provided support.

Most firms are small, some are medium-sized and few are large. But the size of firms in the large category vary greatly. It has become useful to distinguish smaller large companies for some purposes.

For example, in European Union usage, SMEs do not exceed €43m in turnover while large companies turn over many billions. Opportunities of many kinds vary materially with a firm's size, for example, the available range of investment and financing opportunities.


No doubt terminology will continue to develop until its use in law and regulation makes further change more difficult or confusing.

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