M3 is broad money. M3 = M1 + Time deposits with the banking system. M2 = M1 + Savings deposits of post office savings banks. M1 = Currency with public + Demand deposits with the Banking system (savings account, current account). You can read about the Money Supply in Economy – Types of Money, Monetary Aggregates, Money Supply Control in the given link.
Further readings:
- Monetary Policy Committee (MPC) – Structure, Objectives UPSC Notes
- Monetary Policy – Objectives, Role, Instruments
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