What is 'M0'

M0 is 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 some parts of the world, the M0 supply is referred to as narrow money.


M0 (M-zero) is the most liquid measure of the money supply. It includes coins, cash, and other assets that can be quickly converted into currency. The term narrow money comes from the fact it is the smallest measure of the money supply.

M0 makes up about one-tenth of M1, which includes all other assets that are easily converted into cash such as commercial paper, short-term deposits, and money held in checking accounts. M0 includes money held inside or outside private institutions. M0 is the smallest of the subsets of money supply, which include M0, M1, M2, and M3. 

According to data provided by trading economics, M0 reached a record high of 4075024 USD Million in August of 2014, and has averaged 710060.99 USD Million from 1959 until 2017.