M3

M3 is a classification model used by the International Monetary Fund to measure the total amount of money circulating in an economy. It includes the most liquid forms of money, such as cash, checking deposits, and easily accessible savings accounts. Think of M3 as a way to understand how much money people and businesses can quickly access and use for spending or investment. Monitoring M3 helps economists and policymakers assess economic health, inflation risks, and how monetary policy might need adjustments to promote stability and growth.