M3 what does it include?

Answer 1

M3 is a broad measure of the money supply in an economy, which includes M2 along with large time deposits, institutional money market funds, and other larger liquid assets. Specifically, M3 encompasses all physical currency, demand deposits, savings accounts, and certain types of money market funds. It is used by economists to gauge the overall liquidity in the economy and can help inform monetary policy decisions. However, many central banks have ceased publishing M3 data, as it can be less relevant compared to narrower measures like M1 and M2.