The World of Money: Unveiling the Mysteries of M0, M1, and M2 Supply

If I snap my fingers and all the money in the world appeared, how much would it actually be? That’s a great question. And it has a name. It’s called M0, or the total amount of paper money and coins in circulation plus the amount of current central bank reserves. In 2024, The United States alone had M0 of $2.34 trillion. That’s the combined net worth of Jeff Bezos, Elon Musk, and Zuckerberg times 3.96. But that isn’t global, and it’s only cash in circulation. If we consider all the countries, we see about $5 trillion in M0 supply. But then there’s something called M1 and M2. It’s M0 supply I plus all the money in your savings accounts and travelers checks. And M2 is all the money in M1 plus short term assets that mature in less than a year, like Cds. If we combine them all globally, we get something around $82.6 trillion. It would take 45,430 semi trucks filled with 100 dollar bills to hold all that money. Follow for more interesting stories on how money and life connect.