Broad money supply is another name for broad money, the wide measure of the amount of money in an economy. It adds to notes and coins the deposits held at banks and similar institutions that can be spent directly or converted into spendable form quickly and at little cost, such as current accounts, savings accounts and short-term time deposits.
The word "supply" emphasises that the figure is a stock measured at a point in time and reported by the central bank as part of its monetary statistics. Exact definitions differ. The United States uses M2, the euro area treats M3 as its broad aggregate, and the Bank of England has used M4. Each sits within the wider framework of the money supply, alongside narrower measures such as the monetary base.
Most broad money is commercial bank money, created when banks lend. Central banks and economists watch its growth as one indicator of credit conditions and future inflation, though its link to prices has proved unstable.