| Japan's money supply rises in August |
| Date: 2010/9/9 Click: 1735 |
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Japan's benchmark money supply measure grew 2.1 percent in August from a year earlier, the Bank of Japan (BOJ) said in a monthly report on Wednesday.
Japan's money stock, as measured by the key M2 aggregate, rose slightly to 2.8 percent on year in August following a 2.7 percent increase logged in July, the central bank data revealed.
The balance of M2 includes currency in circulation and deposits, but excludes those held at Japan Post Bank.
The nation's M3 money stock aggregate increased 2.1 percent on year in the recording month, following a 2.0 percent rise logged in July, the BOJ said.
The balance of M3, which includes currency in circulation, deposit money, so-called "quasi" money and CDs, averaged 1,079.4 trillion yen (12.88 trillion yen), the central bank said.
Money supply or money stock, is the total amount of money available in an economy at a particular point in time and are usually defined as currency in circulation and demand deposits ( depositors' easily-accessed assets on the books of financial institutions).
Leading economists are quick to note that there is a direct relation between long-term price inflation and money-supply growth, at least for rapid increases in the amount of money in the economy. |
