M0, or reserve money = CIC + bankers’ deposits with RBI + other
deposits with RBI (includes deposits from foreign central banks, etc)
M1, or narrow money = Currency with public + demand deposits in banks + other deposits with RBI
M2 = M1 + post office savings deposits
In India, the following monetary aggregates are used-
M3, or broad money = M1 + time deposits with banks
This is the key variable for broad money tracked in India.
This is essentially currency with public plus all the bank deposits (both time and demand deposits)
M4 = M3 + total post office deposits
Share with your friends: |
