Narrow money

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Economics - money supply.

A category of money supply which includes all physical money (coins and currency) plus demand deposits and other liquid assets held by the central bank.

The classifications of narrow money vary between different jurisdictions.

In the US narrow money is M1 (M0 + demand accounts), while in the UK M0 is termed narrow money.

Central bank digital currencies (CBDC) are also part of narrow money.

Narrow money is also sometimes known as public money, because it is a liability of a central bank, which is a public sector entity.

See also