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| {{mergeto|Money supply|date=October 2007|Talk:Money_supply#Merge_M4_money_supply_into_this_article}} | |||
| With reference to the ] ], '''M4''' is a definition of the ] denoting '']'', a wide definition of the volume of ] in the economy, encompassing ] and ] as well as money held in bank accounts. The measure is equivalent to the ] ''M3'' (see ] for US definitions). | |||
| {{R to section}} | |||
| <blockquote> | |||
| M4 = M0 + UK residents' bank deposits + deposits made by the private sector | |||
| </blockquote> | |||
| Where M0 (''Narrow Money'') denotes the total of notes and coin in circulation in the economy plus commercial banks' deposits at the ]. | |||
| There are several different definitions of money supply to reflect the differing stores of money. Due to the nature of bank deposits, especially time-restricted savings account deposits, the M4 represents the most ] measure of money. M0, by contrast, is the most liquid measure of the money supply. | |||
| ] | |||
| == See also == | |||
| *] | |||
| * | |||
| ] | |||
| ] | |||
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