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Measuring the money supply can be problematic due to the varying definitions of money, such as M1 and M2, which can lead to confusion about what constitutes "money." Additionally, the rise of digital currencies and financial innovations complicates traditional measurements, as they may not be fully captured in standard metrics. Furthermore, the presence of informal or shadow banking systems can obscure the true amount of money in circulation, making accurate assessment challenging. Lastly, data collection methods may be inconsistent or lag behind real-time changes in the economy, resulting in outdated or inaccurate figures.

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2mo ago

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