# M1 (M1)

- Canonical URL: https://www.gerhardmerk.de/m1-m1
- Post ID: 593869
- Modified: 2023-07-25T21:03:30+00:00
- Language: en

## Definition

According to the ECB's definition - cash (banknotes and coins) and - balances that can be readily converted into cash (overnight deposits) or used for non-cash payments. - M1 accounts for around forty percent of M 3 in the euro area, is considered to be very sensitive to interest rates and mainly reflects the characteristic of money as an intermediate medium of exchange; in other words, there is a close link between M1 and actual spending. - Cf. Deutsche Bundesbank's Monthly Bulletin of March 1999, p. 15; ECB's Monthly Bulletin of May 2001, p. 57; ECB's Monthly Bulletin of September 2003, p. 11 (overview); ECB's Monthly Bulletin of July 2007, pp. 70 et seq. (breakdown of M1 growth; overviews); ECB's Monthly Bulletin of October 2008, pp. 17 et seq. (informative value of M1 in terms of growth; overviews), as well as the ongoing coverage in the annex "Euro area statistics," heading "Monetary developments, banks and investment funds," subheading "Monetary aggregates and counterparts" of the respective ECB Monthly Bulletin. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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