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How much money is in the world?

bballcrook21
Posts: 4,468
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8/8/2016 1:01:08 AM
Posted: 4 months ago
How much money is there in the whole world? There are four categories of "money": M0, M1, M2, and M3.

M0 consists of banknotes and coins in circulation. There are 135 currencies in the world, totaling US$5.2 trillion. This is the only money that exists physically.

M1 consists of M0 plus checking accounts. Total = US$25 trillion.

M2 consists of M1 plus savings accounts and time deposits under $100,000. Total = US$57 trillion.

M3 is the broadest measure of money. It consists of M2 plus large time deposits, institutional money market funds, short-term repurchase agreements, and other large liquid assets. Total = US$75 trillion (as of 2010).

Thus, of all the money in the world, more than 93% only exists as entries on banking ledgers, usually stored digitally. Only 7% exists physically as cash or coin.

SOURCE: https://web.archive.org...
If you put the federal government in charge of the Sahara Desert, in 5 years there'd be a shortage of sand. - Friedman

Underlying most arguments against the free market is a lack of belief in freedom itself. -Friedman

Nothing is so permanent as a temporary government program. - Friedman

Society will never be free until the last Democrat is strangled with the entrails of the last Communist.
triangle.128k
Posts: 3,675
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8/8/2016 8:23:16 AM
Posted: 4 months ago
At 8/8/2016 1:01:08 AM, bballcrook21 wrote:
How much money is there in the whole world? There are four categories of "money": M0, M1, M2, and M3.

M0 consists of banknotes and coins in circulation. There are 135 currencies in the world, totaling US$5.2 trillion. This is the only money that exists physically.

M1 consists of M0 plus checking accounts. Total = US$25 trillion.

M2 consists of M1 plus savings accounts and time deposits under $100,000. Total = US$57 trillion.

M3 is the broadest measure of money. It consists of M2 plus large time deposits, institutional money market funds, short-term repurchase agreements, and other large liquid assets. Total = US$75 trillion (as of 2010).

Thus, of all the money in the world, more than 93% only exists as entries on banking ledgers, usually stored digitally. Only 7% exists physically as cash or coin.

SOURCE: https://web.archive.org...

Not really surprised about the lack of physical money in the world. In fact, I wouldn't be surprised if physical money becomes extinct in industrialized first world countries at some point.