M0

AAA

DEFINITION of 'M0'

A measure of the money supply which combines any liquid or cash assets held within a central bank and the amount of physical currency circulating in the economy. In the United Kingdom, the M0 supply is also referred to as narrow money.

INVESTOPEDIA EXPLAINS 'M0'

M0 (M-zero) is the most liquid measure of the money supply. It only includes cash or assets that could quickly be converted into currency. This measure is known as narrow money because it is the smallest measure of the money supply.

RELATED TERMS
  1. M3

    A measure of money supply that includes M2 as well as large time ...
  2. M2

    A measure of money supply that includes cash and checking deposits ...
  3. M1

    A measure of the money supply that includes all physical money, ...
  4. Currency In Circulation

    Currency that is physically used to conduct transactions between ...
  5. Monetary Aggregates

    Broad categories measuring the total value of the money supply ...
  6. Liquidity

    1. The degree to which an asset or security can be bought or ...
Related Articles
  1. What Is Fiscal Policy?
    Economics

    What Is Fiscal Policy?

  2. What Are Central Banks?
    Personal Finance

    What Are Central Banks?

  3. What Is the Quantity Theory of Money?
    Fundamental Analysis

    What Is the Quantity Theory of Money?

  4. The Money Market: A Look Back
    Bonds & Fixed Income

    The Money Market: A Look Back

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center