This is an interesting article by Frank Shostak about the what is the definition of the money supply. He makes the point that the most important aspect of money is that it is a medium of exchange. Therefore money supply at its most basic is money that can be used for exchange immediately, without restrictions. This limits the money supply to being cash and demand deposits, not including savings accounts and money market accounts which Shostak contends are like credit instruments because they have time restrictions.
The guys over at GaveKal pointed me to this one. Worth the read.
The Mystery of The Money Supply Definition
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