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What determines the amount money in an economy?

In: Economics [Edit categories]

Answer:

1) Demand for money (economy growth etc.)
2) Monetary policy of central bank.

So these two sides come into equilibrium decision of money supply. More strictly local currency is supplied by central bank - and demand for money is secondary (of course with some issues).

First answer by ID1368760372. Last edit by ID1368760372. Question popularity: 3 [recommend question].

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