DEFINITION of 'Money Zero Maturity - MZM'

A measure of the liquid money supply within an economy. MZM represents all money in M2 less the time deposits, plus all money market funds.

BREAKING DOWN 'Money Zero Maturity - MZM'

MZM has become one of the preferred measures of money supply because it better represents money readily available within the economy for spending and consumption. This measurement derives its name from its mixture of all the liquid and zero maturity money found within the three "M's."

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RELATED FAQS
  1. What happens when M2 money supply grows faster than the overall economy?

    Find out what happens if the total supply of money and money substitutes expands at a faster rate than the productive output ... Read Answer >>
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    Learn about the effects of changes in interest rates on M2. M2 includes M1 and other less-liquid short-term investments that ... Read Answer >>
  3. What types of money are included in money supply?

    Read about several different monetary aggregates used to define the money supply, both at the Federal Reserve and by outside ... Read Answer >>
  4. How does money supply affect interest rates?

    Read about the link between the supply of money and market interest rates, and find out why money supply alone can't explain ... Read Answer >>
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    Discover which variables help determine the velocity of money (as measured by M2 aggregates) and why nominal income plays ... Read Answer >>
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    Understand the characteristics that distinguish money market accounts from checking, savings account and money market funds ... Read Answer >>
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