Money is the medium of trade for goods and services. This doesn’t actually make the world go around, but countries ‘ economies depend on the exchange of money for goods and services.
Money supply data is typically collected and released by the government or the country’s central bank. As it is present in various forms (virtual and physical) in different currencies, it is exceedingly difficult to determine the exact total amount.
Different Types of Money
Usually, various forms of money are known as “M”s They range from M0 (narrowest) to M3 (broadest), depending on the policy formulation of the central bank of the country.
M0: All circulating physical currency including coins, notes, and bills is referred to as M0 money.
M1: Includes all M0 money supply currencies, plus all money held in demand deposits, traveler’s checks, other checkable deposits, and negotiable withdrawal orders. M1 money essentially contains currency and properties which can be transformed rapidly into cash.
M2: Includes all M1, plus deposit savings, mutual funds, money market securities, and other time deposits. These assets are typically used as a medium of trade and are less liquid than M1.
M3: Is M2 plus large deposit certificates, institutional money market funds, and short-term repurchase contracts. These assets are less liquid than other money-supply elements.
Since 2006, the Federal Reserve System hasn’t tracked M3 money, because all valuable economic activity information is already available in the M2 money supply.
How Much Money is there in the World?
As of January 31, 2019, approximately US$ 1.7 trillion was in circulation, including notes, coins, and currencies no longer issued by the Federal Reserve.
Around US$ 36.8 trillion is in circulation: this includes all of the physical currency and money deposited in savings and checking accounts. This figure represents only ‘narrow money’.
If you add the ‘broad money,’ however, the sum goes up to more than $90.4 trillion. This amount increases further when including bitcoins and other cryptocurrencies.
Money reaches $1.2 quadrillion in the form of investments, derivatives, and cryptocurrencies. This is what it looks like: $1,200,000,000,000,000 written out.
Richest Countries in the World
Through looking at the GDP per capita, or gross domestic product per capita, of each country across the globe, countries can be ranked on the basis of income and then compared with each other. From there, you can decide which countries are the wealthiest, and then list the countries in downward order, from the wealthiest to the poorest. Following are the list of top 10 wealthiest countries:
- Luxembourg (GDP per capita: $119,719)
- Norway (GDP per capita: $86,362)
- Switzerland (GDP per capita: $83,832)
- Ireland (GDP per capita: $81,477)
- Iceland (GDP per capita: $78,181)
- Qatar (GDP per capita: $65,062)
- The United States of America (GDP per capita: $64,906)
- Denmark (GDP per capita: $63,434)
- Singapore (GDP per capita: $62,690)
- Australia (GDP per capita: $58,824)