Monthly M4 money supply in the UK 2010-2021
The M4 money supply reached nearly grew by 100 billion GBP over the course of 2020, continuing its growth despite COVID-19. Money supply is understood as the entire stock of currency and other liquid financial instruments circulating in the economy of the country at the particular point in time. Money supply can be measured in various ways: one of these is M4 measure. It is also called a "broad money aggregate", as it is based on the most inclusive methods of calculating a country's money supply, it results in the broadest estimate. The formula for calculation varies to a degree between countries, but the general rule is to include the totality of assets that households and businesses use to make payments and to hold as short-term investments. In the United Kingdom, this measure includes currency (notes and coin), funds in bank accounts: sterling deposits, commercial papers, bonds, claims on MFIs arising from repos, estimated holdings of sterling bank bills and other categories.
