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Currency System
M1,M2,M3,M4
[Economy For Newbies by Mrunal Patel]
Contents
What is all this M1,M2,M3,M4 crap? ...........................................................................................................................1
Who calculates M1-M4? .............................................................................................................................................2
What are the other names of this? ..............................................................................................................................2
Was there any reform in it?.........................................................................................................................................2
What is all Hot money, soft money, hard currency etc?.................................................................................................2
What's Dear Money & Cheap money?..........................................................................................................................3
Where is all currency printed? (prelim / GS mains 2 markers)........................................................................................3
As we saw earlier, RBI controls the money supply by changing its CRR, Repo etc rates. (thus controls inflation)
Side note-- Govt. controls economy via changing Tax rates- that's called 'Fiscal Policy'
Now see this chart
Yes there was YB Reddy Group 1997-98 - and on their recommendations- following steps were taken.
Financial Sector Survey every 3 Months
4 New measures :M0-M3
3 Types Liquidity