Currency Supply

Currency supply refers to the total amount of money available in the economy at a specific time. It includes cash (physical bills and coins) and other forms of money, like balances in bank accounts that can easily be accessed or transferred. Central banks manage the currency supply to control inflation, support economic growth, and maintain financial stability. An increase in currency supply means more money is circulating, which can encourage spending but also risk inflation. Conversely, reducing the currency supply can help slow inflation but might also restrict economic activity.