Monetary Economics

1. Money Supply
   1. Components of money supply
      1. M0, M1, M2, M3 aggregates
         1. M0 (Narrow Money)
            1. Definition and characteristics
            2. Components, such as coins and banknotes
            3. Role in the physical economy
         2. M1 (Liquid Money)
            1. Definition and characteristics
            2. Demand deposits
            3. Travelers' checks
            4. Use in daily transactions
         3. M2 (Near Money)
            1. Definition and characteristics
            2. Savings accounts
            3. Money market securities
            4. Time deposits under a certain size
            5. Importance in broader economic analysis
         4. M3 (Broad Money)
            1. Definition and characteristics
            2. Time deposits larger than a certain size
            3. Institutional money market funds
            4. Insight into overall economic liquidity
   2. Creation of money
      1. Fractional-reserve banking
         1. How fractional-reserve banking works
         2. The reserve ratio and its significance
         3. Impact on money multiplication
         4. Risks associated with fractional-reserve banking
      2. Role of commercial banks
         1. Mechanisms of lending and money creation
         2. Bank balance sheets and reserve management
         3. Influence of interest rates on loan issuance
         4. The relationship between central bank policies and commercial bank operations
   3. Measurement of money supply
      1. Importance of accurate measurement
         1. Economic forecasting
         2. Monetary policy formulation
      2. Statistical methods and data collection
         1. Surveys and reporting from financial institutions
         2. Input from various public and financial entities
      3. Challenges in measurement
         1. Rapid technological changes in financial products
         2. Shadow banking system
         3. Differences in international measurement standards
   4. Velocity of money
      1. Definition and calculation
      2. Role in economic activity analysis
      3. Factors affecting the velocity of money
         1. Consumer and business confidence
         2. Changes in technology and payment systems
         3. Inflationary pressures
      4. Historical trends and significance
         1. Correlation with economic booms and recessions
         2. Predictive value for inflation and economic performance
   5. Influence of money supply on the economy
      1. Impact on inflation rates
         1. Quantity theory of money
         2. Link between money supply growth and price stability
      2. Effects on interest rates
         1. Short-term vs. long-term impacts
         2. Monetary policy interventions
      3. Relationship with economic growth
         1. Stimulatory effects of money supply expansion
         2. Risks of excessive monetary expansion
      4. Implications for exchange rates
         1. Influence on currency valuation
         2. Role in international trade competitiveness
   6. Policy implications and management
      1. Central bank approaches to controlling money supply
         1. Use of policy tools like open market operations
         2. Setting reserve requirements
      2. Challenges in managing money supply
         1. Balancing economic growth with inflation control
         2. External shocks and financial crises
      3. Coordinated international monetary management
         1. Role of organizations like the International Monetary Fund (IMF)
         2. Collaboration among major central banks
   7. Recent developments and innovations
      1. Digital currencies and their impact
         1. Introduction of central bank digital currencies (CBDCs)
         2. Cryptocurrencies and decentralized finance (DeFi)
      2. Influence of financial technology (fintech)
         1. Changes in payment systems
         2. Peer-to-peer lending and its effects on money supply
      3. Adapting traditional concepts to modern economies
         1. Levelling the playing field in access to banking
         2. Regulatory responses to new financial instruments