1. Money

What does money do in the economy, and what does money mean for central banks?

1. Money

1.1 Cash

The most basic and intuitive form of money is cash – banknotes and coins.

1.1 Cash

1.2 Deposits

Money can also take the form of deposits held in bank accounts by people (households) and companies.

1.2 Deposits

1.3 Measures of money

Over the long term inflation and the increase in the amount of money circulating in the economy should be related.

1.3 Measures of money