Read what M0, M1, M2, M3 are. M
stands for money. 0,1,2,3 stands for the different ways to account
for the money available.
Money supply -
Wikipedia, the free encyclopedia
Thanks Andrew.
In economics, money
supply, or money stock, is the total
amount of money
available in an economy at a particular point
in time.[1]
There are several ways to define "money", but standard measures
usually include currency in circulation and
demand
deposits.[2][3]
Money supply data are recorded and published, usually by the
government or the central bank of the country. Public- and
private-sector analysts have long monitored changes in money supply
because of its possible effects on the price
level, inflation and the business cycle.[4]
That relation between money and prices is historically
associated with the quantity theory of money. There
is strong empirical evidence of a direct empirical relation between
long-term price inflation and money-supply
growth. These underlie the current reliance on monetary policy as a means of
controlling inflation.[5][6]
This causal chain is however contentious, with heterodox economists
arguing that the money supply is endogenous and that the sources of
inflation must be found in the distributional structure of the
economy.
http://en.wikipedia.org/wiki/M1_(economics)