Published: 28 December 2020,08:14
Analysis
The main role of any central bank is to control a country’s money supply.
By decreasing borrowing costs, central banks are effectively increasing the money supply.
The money supply is a measure of the entire amount of bills, notes, coins, loans, credit and other liquid instruments in circulation within a country’s economy.
Money supply is measured by M0, M1, M2 and M3, with M0 being the narrowest measure of money (cash and liquid assets), and M3 being the broadest.
The money supply is an important factor to keep an eye on, especially if you want to trade FX.
Increased money supply demonstrates early signs of inflation – if the supply of money exceeds the supply of goods prices are likely to rise – hello inflation.
Back in the day the government used to set targets for the growth rate of the money supply and would often manipulate interest rates to force the supply to fall in line with their suggested brackets. In fact, many stipulate that the over manipulation of interest rates back in the 80s [a period when the US government believed the money supply was growing proportionately out of control] was actually responsible for the economic recession of that time.
It seems they learnt their lesson; governments don’t force the monetary growth to fall within their target brackets anymore. Governments nowadays just “play it by ear” waiting for the right moment to do the right thing in order to maintain stability, keep inflation in check, and promote sustainable growth.
以行业低点差和闪电般的执行速度交易外汇、指数、贵金属等。
交易平台
学习
关于PU Prime
企业
Important Notice to Visitors
Our products and services are not offered or made available to residents of your jurisdiction. The information on this Website is not directed at persons in your jurisdiction and is not intended as an offer, solicitation, or promotion of our products or services to them.
By clicking “I Understand”, you acknowledge this notice and confirm that you are accessing this Website at your own initiative. Access to this Website does not mean that our products or services are available to you.
Important Notice
Please be advised that our products and services are currently unavailable to residents and entities located in the Philippines.
This restriction is a result of our firm commitment to adhering to applicable legal and regulatory requirements in all jurisdictions where we operate. In line with our internal compliance protocols and evolving global standards, we continuously assess and update access to our platform to ensure full regulatory alignment.
We appreciate your understanding and cooperation.
If you believe this restriction has been applied in error, please contact our support team for further assistance.
尊敬的客户：
为持续提供稳定与可靠的交易环境，PU Prime 将于每周周末进行以下例行系统优化：
我们对由此可能造成的不便深表歉意，并衷心感谢您的体谅。PU Prime 始终致力于为您提供卓越的交易体验，而本次每周定期系统优化正是为了进一步确保您的交易过程更加稳定与顺畅。
若未来涉及更长时间的系统升级，PU Prime 将提前通过单独公告进行通知。
Important Notice:
Please note the Website is intended for individuals residing in jurisdictions where accessing the Website is permitted by law.
Please note that PU Prime and its affiliated entities are neither established nor operating in your home jurisdiction.
By clicking the "Acknowledge" button, you confirm that you are entering this website solely based on your initiative and not as a result of any specific marketing outreach. You wish to obtain information from this website which is provided on reverse solicitation in accordance with the laws of your home jurisdiction.
Aviso importante:
Ten en cuenta que el sitio web está destinado a personas que residen en jurisdicciones donde el acceso al sitio web está permitido por la ley.
Ten en cuenta que PU Prime y sus entidades afiliadas no están establecidas ni operan en tu jurisdicción de origen.
Al hacer clic en el botón "Aceptar", confirmas que estás ingresando a este sitio web por tu propia iniciativa y no como resultado de ningún esfuerzo de marketing específico. Deseas obtener información de este sitio web que se proporciona mediante solicitud inversa de acuerdo con las leyes de tu jurisdicción de origen.
