Broad Liquidity


DEFINITION of 'Broad Liquidity'

A category of the money supply which includes: all funds in M3, individual holdings in accounts, savings bonds, T-bills with maturity of less than one year, commercial papers, and banker's acceptances.

BREAKING DOWN 'Broad Liquidity'

This is the widest measure of money supply. Broad liquidity can be generalized as the total amount of money issued by a central bank plus any new money created by commercial banks through lending. This is one of the economic measures that policy-makers and investors use to track and forecast inflation.

  1. Inflation

    The rate at which the general level of prices for goods and services ...
  2. M3

    A measure of money supply that includes M2 as well as large time ...
  3. Money Zero Maturity - MZM

    A measure of the liquid money supply within an economy. MZM represents ...
  4. Macroeconomics

    The field of economics that studies the behavior of the aggregate ...
  5. Economics

    A social science that studies how individuals, governments, firms ...
  6. Central Bank

    The entity responsible for overseeing the monetary system for ...
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