{"id":6871,"date":"2024-04-02T07:47:34","date_gmt":"2024-04-02T07:47:34","guid":{"rendered":"https:\/\/www.nextias.com\/blog\/?p=6871"},"modified":"2024-04-02T08:12:15","modified_gmt":"2024-04-02T08:12:15","slug":"money-and-money-supply","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/","title":{"rendered":"Money and Money Supply"},"content":{"rendered":"\n<p><em><strong>Money and Money Supply<\/strong> are the lifeline of an economy and central to our daily transactions. Understanding the mechanics of money and money supply is essential for grasping the broader economic forces at play, enabling informed decisions in both personal finance and policy-making arenas. This <strong>article of NEXT IAS<\/strong> aims to explain in detail the concept of Money and its types, along with the mechanism involved in the supply of money, Money Supply Measures, and other related concepts.<\/em><\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_56_1 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#What_is_Money\" title=\"What is Money?\">What is Money?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#Barter_System_and_Evolution_of_Money\" title=\"Barter System and Evolution of Money\">Barter System and Evolution of Money<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#Major_Functions_of_Money\" title=\"Major Functions of Money\">Major Functions of Money<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#Types_of_Money\" title=\"Types of Money\">Types of Money<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#Commodity_Money\" title=\"Commodity Money\">Commodity Money<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#Metallic_Money\" title=\"Metallic Money\">Metallic Money<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#Paper_Money\" title=\"Paper Money\">Paper Money<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#Fiat_Money\" title=\"Fiat Money\">Fiat Money<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#Bank_Money_or_Credit_Money\" title=\"Bank Money or Credit Money\">Bank Money or Credit Money<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#Plastic_Money\" title=\"Plastic Money\">Plastic Money<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#Helicopter_Money_or_Helicopter_Drop\" title=\"Helicopter Money or Helicopter Drop\">Helicopter Money or Helicopter Drop<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#Digital_Money_or_Electronic_Money\" title=\"Digital Money or Electronic Money\">Digital Money or Electronic Money<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#Money_Supply\" title=\"Money Supply\">Money Supply<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#Money_Supply_Measures\" title=\"Money Supply Measures\">Money Supply Measures<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#M0_Reserve_Money\" title=\"M0 (Reserve Money)\">M0 (Reserve Money)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#M1_Narrow_Money\" title=\"M1 (Narrow Money)\">M1 (Narrow Money)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#M2\" title=\"M2\">M2<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#M3_Broad_Money\" title=\"M3 (Broad Money)\">M3 (Broad Money)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#M4\" title=\"M4\">M4<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#New_Monetary_Aggregates\" title=\"New Monetary Aggregates\">New Monetary Aggregates<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#NM0_Monetary_Base_or_Reserve_Money\" title=\"NM0 (Monetary Base or Reserve Money)\">NM0 (Monetary Base or Reserve Money)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#NM1_Narrow_Money\" title=\"NM1 (Narrow Money)\">NM1 (Narrow Money)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#NM2\" title=\"NM2\">NM2<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#NM3_Broad_Money\" title=\"NM3 (Broad Money)\">NM3 (Broad Money)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#Liquidity_Aggregates\" title=\"Liquidity Aggregates\">Liquidity Aggregates<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#L1\" title=\"L1\">L1<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#L2\" title=\"L2\">L2<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#L3\" title=\"L3\">L3<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#Velocity_of_Money\" title=\"Velocity of Money\">Velocity of Money<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#FAQs_on_Money_and_Money_Supply\" title=\"FAQs on Money and Money Supply\">FAQs on Money and Money Supply<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#What_Constitutes_Money\" title=\"What Constitutes Money?\">What Constitutes Money?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#What_is_meant_by_%E2%80%98Currency_in_Circulation\" title=\"What is meant by \u2018Currency in Circulation\u2019?\">What is meant by \u2018Currency in Circulation\u2019?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#How_does_the_Central_Bank_control_the_Money_Supply\" title=\"How does the Central Bank control the Money Supply?\">How does the Central Bank control the Money Supply?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#What_role_does_the_Supply_of_Money_play_in_Inflation\" title=\"What role does the Supply of Money play in Inflation?\">What role does the Supply of Money play in Inflation?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/www.nextias.com\/blog\/money-and-money-supply\/#How_does_the_Money_Supply_impact_interest_rates\" title=\"How does the Money Supply impact interest rates?\">How does the Money Supply impact interest rates?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1000\" height=\"563\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/04\/1.png\" alt=\"Money and Money Supply\" class=\"wp-image-6872\" style=\"width:656px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/04\/1.png 1000w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/04\/1-458x258.png 458w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/04\/1-350x196.png 350w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/04\/1-768x432.png 768w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/04\/1-696x392.png 696w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/04\/1-746x420.png 746w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/04\/1-150x84.png 150w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-6f79f4d016b067ee3b8d5bac5fbbfc00\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"What_is_Money\"><\/span><strong>What is Money?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Money <\/strong>is defined as something that is generally accepted by society as a <strong>medium of exchange<\/strong> and which can act as a <strong>unit of account, a store of value,<\/strong> and be <strong>used for repayment of debt.<\/strong><\/p>\n\n\n\n<p>Money developed as a better <strong>alternative to the barter system<\/strong> of trade that had existed across the world since ancient times.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-b751d1a59c7335fb880c75369a1ccad2\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"Barter_System_and_Evolution_of_Money\"><\/span><strong>Barter System and Evolution of Money<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The <strong>Barter System<\/strong> refers to the act of <strong>trading goods and services<\/strong> between two or more parties directly, <strong>without the use of an intermediary monetary medium,<\/strong> such as money or credit card. In other words, the barter system involves an exchange of one kind of goods and services for another kind of goods and services.<\/p>\n\n\n\n<p>The barter system has been in use since the beginning of recorded history. However, as the economy grew in terms of its size and number of economic players, this system of trade started facing several difficulties as explained below:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Issue of Double Coincidence of Wants<\/strong>: \u201cDouble Coincidence of Wants\u201d means that if one wants to exchange some goods with another person then the latter must also be willing to exchange his goods with the first person.\n<ul class=\"wp-block-list\">\n<li>For example, a person, who wants clothes and has rice with him to offer in return, can exchange rice for cloth with only that another person who has cloth and who also wants rice. In practical life, finding such a person might be difficult.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Issue of Large and Long Storage<\/strong>: In a barter system, a person must store a large volume of his own goods in order to exchange for his\/her desired goods with others on a day-to-day basis. However, the good loses its original quality and value if it is stored for a long period.<\/li>\n<\/ul>\n\n\n\n<p>These <strong>problems of the Barter System <\/strong>meant that as human civilization progressed, people felt the need for some common medium of exchange that could be easily carried, stored, and used to express the value of a good. It is this need that <strong>brought the money into being.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-34a0b4a04e60203f7f07f9bbb411855d\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"Major_Functions_of_Money\"><\/span><strong>Major Functions of Money<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The main functions of money in a modern economy can be seen as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Medium of Exchange<\/strong>: The primary and unique function of money is to serve as a medium of exchange. It resolves the issue of double coincidence of wants and facilitates economic exchanges with ease.<\/li>\n\n\n\n<li><strong>Unit of Account<\/strong>: Money is the common standard for measuring the relative worth of goods and services. This makes it easier to compare values and setting prices.<\/li>\n\n\n\n<li><strong>Store of Value<\/strong>: Money also serves as a store of value. People can hold their wealth in the form of money. Money provides a liquid store of value because it is easy to spend and store.<\/li>\n\n\n\n<li><strong>Standard of Deferred Payments<\/strong>: Money facilitates transactions that are not settled immediately but require a future payment.<\/li>\n\n\n\n<li><strong>Means of Payment<\/strong>: Money is used to settle debts and pay for obligations, including taxes, fees, and fines.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-28012b44a801df02271900aaf5b1edac\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"Types_of_Money\"><\/span><strong>Types of Money<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Economies across the world make use of various forms of money as can be seen below:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"633\" height=\"407\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/04\/2.png\" alt=\"Types of Money\" class=\"wp-image-6873\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/04\/2.png 633w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/04\/2-401x258.png 401w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/04\/2-150x96.png 150w\" sizes=\"auto, (max-width: 633px) 100vw, 633px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-a7030838c4d20fc2c835ad441479423c\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"Commodity_Money\"><\/span><strong>Commodity Money<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Commodity money is that type of money that possesses intrinsic value of its own, independent of any governing body. This means the money itself contains a worth.<br>Numerous commodities such as gold, silver, copper, chocolate beans, etc, have been used as Commodity Money.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-c109d349d982d3e69b23e26c7dbfde9f\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"Metallic_Money\"><\/span><strong>Metallic Money<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Metallic Money refers to money that is made up of pure and superior metals like gold and silver. Convenience, storability, high-value density, and easy portability led metallic money to take the place of commodity money.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-ad0282de6d63fa366ccbfe2d58ae2e4a\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"Paper_Money\"><\/span><strong>Paper Money<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Paper money consists of currency notes issued by the government or the central bank of a country.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-0343290a8168954ca1a383f9a7b0a063\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"Fiat_Money\"><\/span><strong>Fiat Money<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Fiat Money refers to <strong>Government-issued money<\/strong>, not backed by any physical commodity like gold and silver, but by the Government that issued it.\n<ul class=\"wp-block-list\">\n<li>This type of money does not have any intrinsic value as such. Rather, they derive their value from the guarantee provided by the issuing authority.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Currency notes<\/strong> and <strong>coins <\/strong>in India are examples of <strong>fiat money.<\/strong>\n<ul class=\"wp-block-list\">\n<li>In India, every currency note and coin bears on its face, a <strong>promise from the<\/strong> <strong>Governor of RBI<\/strong> that if someone produces them to RBI or any other commercial bank, RBI will be responsible for giving the person purchasing power equal to the value printed on them.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Fiat Money is <strong>also called legal tenders <\/strong>as they cannot be refused by any citizen of the country for settlement of any kind of transaction.\n<ul class=\"wp-block-list\">\n<li>Cheques drawn on savings or current accounts and <strong>Demand Deposits (DD)<\/strong> are <strong>not legal tenders<\/strong> as they can be refused by anyone as a mode of payment.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-b012c0af51ab869641f1fcfb78d1075d\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"Bank_Money_or_Credit_Money\"><\/span><strong>Bank Money or Credit Money<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Bank Money or Credit Money refers to money held in the form of <strong>demand deposits with commercial banks.<\/strong><\/li>\n\n\n\n<li>Demand deposits of banks are withdrawable through cheques. However, a cheque by itself is not money, it is only a credit instrument that is used and accepted as a medium of exchange.\n<ul class=\"wp-block-list\">\n<li>Therefore, <strong>credit money is regarded as \u2018near money\u2019.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-5b8b0c889d45fd955f82c95bf1b797e3\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"Plastic_Money\"><\/span><strong>Plastic Money<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Plastic money is a term that is used predominantly in reference to the <strong>hard plastic cards <\/strong>in place of actual bank notes. They can come in many different forms such as <strong>cash cards, credit cards, debit cards,<\/strong> etc.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-6cae7cff47ac28b51970539cfb42cae1\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"Helicopter_Money_or_Helicopter_Drop\"><\/span><strong>Helicopter Money or Helicopter Drop<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Helicopter Money or Helicopter Drop refers to <strong>increasing the supply of money<\/strong> in an economy through measures such as more spending, tax cuts, etc.<\/li>\n\n\n\n<li>It is, basically, an expansionary fiscal or monetary policy that involves printing large sums of money and distributing it to the public in order to stimulate the economy.<\/li>\n\n\n\n<li>The term \u2018Helicopter Drop\u2019 was coined by the American economist Milton Friedman in 1969.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-73c44d6691e00b9d133ae865fe29c897\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"Digital_Money_or_Electronic_Money\"><\/span><strong>Digital Money or Electronic Money<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Digital Money or Electronic Money refers to any means of payment that <strong>exists in a purely electronic form.<\/strong><\/li>\n\n\n\n<li>Unlike other forms of money, Digital Money is not physically tangible.<\/li>\n\n\n\n<li>At present, this form of money is increasingly becoming prevalent with the rise of online banking and digital wallets.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-5463b31758bfc0ed8b0b124b5631891e\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"Money_Supply\"><\/span><strong>Money Supply<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <strong>total stock of money in circulation among the public<\/strong> at a particular point in time is called money supply or supply of money.<\/li>\n\n\n\n<li>It is to be noted the term \u2018public\u2019 refers to households, firms, local authorities, companies, etc, and does not include the government and banks.\n<ul class=\"wp-block-list\">\n<li>Thus, public money <strong>does not include money held by<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>the government<\/strong><\/li>\n\n\n\n<li><strong>the RBI (in the form of CRR), and<\/strong><\/li>\n\n\n\n<li><strong>the commercial banks (in the form of SLR).<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Money, forming part of the Supply of Money, can be in the following forms:\n<ul class=\"wp-block-list\">\n<li>Currency Notes and Coins (CU)<\/li>\n\n\n\n<li>Demand Deposits such as Saving Bank Deposits (DD) &#8211; These are those deposits that can be withdrawn on demand from banks.<\/li>\n\n\n\n<li>Other Deposits such as Time Deposits\/Term Deposits\/Fixed Deposits &#8211; These are those deposits that can be withdrawn only after a specific time.<\/li>\n\n\n\n<li>Money held in Post Office Saving Accounts.<\/li>\n\n\n\n<li>Deposits of Banks in other Banks\/RBI (except CRR).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-bb650fb6bd90ce34fdcecc5aef6443ca\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"Money_Supply_Measures\"><\/span><strong>Money Supply Measures<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Money Supply Measures refer to the tools used to measure the supply of money in an economy. In India, the RBI has been using the following tools as money supply measures:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>M0 (or Reserve Money)<\/li>\n\n\n\n<li>M1 (or Narrow Money)<\/li>\n\n\n\n<li>M2<\/li>\n\n\n\n<li>M3 (or Broad Money)<\/li>\n\n\n\n<li>M4<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"498\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/04\/3.png\" alt=\"Money Supply Measures\" class=\"wp-image-6882\" style=\"width:825px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/04\/3.png 1024w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/04\/3-460x224.png 460w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/04\/3-768x374.png 768w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/04\/3-696x338.png 696w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/04\/3-864x420.png 864w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/04\/3-150x73.png 150w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>The following points are to be noted w.r.t. these Money Supply Measures:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>These measures of the supply of money <strong>vary in terms of the liquidity<\/strong> they possess.<\/li>\n\n\n\n<li>The <strong>decreasing order of liquidity<\/strong> of these monetary aggregates is: <strong>M0 > M1 > M2 > M3 > M4.<\/strong>\n<ul class=\"wp-block-list\">\n<li>This decline in liquidity indicates the <strong>shifting <\/strong>of its <strong>nature <\/strong>from a <strong>\u2018medium of exchange\u2019 <\/strong>to a<strong> \u2018store of value\u2019.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>In India, mostly M0, M1, and M3 are used, while M2 and M4 are rarely used.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-6f494eb912f125b6ea522af409a6244c\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"M0_Reserve_Money\"><\/span><strong>M0 (Reserve Money)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>M0 is the sum of<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Currency in Circulation<\/li>\n\n\n\n<li>Bankers\u2019 Deposits with RBI, and<\/li>\n\n\n\n<li>\u2018Other\u2019 Deposits with RBI<\/li>\n<\/ul>\n\n\n\n<p>Here, \u2018Other\u2019 Deposits with RBI comprise mainly:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Deposits of quasi-government and other financial institutions including primary dealers,<\/li>\n\n\n\n<li>Balances in the accounts of foreign Central banks and Governments,<\/li>\n\n\n\n<li>Accounts of international agencies such as the International Monetary Fund, etc.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-d07b5debe6a9da301ce91bbc30f20281\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"M1_Narrow_Money\"><\/span><strong>M1 (Narrow Money)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>M1 is the sum of<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Currency with the Public, and<\/li>\n\n\n\n<li>Net Demand Deposits held by Commercial Banks<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-25fdc7c0d813c5aa3e07f425f1e6788a\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"M2\"><\/span><strong>M2<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>M2 is the sum of<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>M1, and<\/li>\n\n\n\n<li>Savings Deposits with Post Office Savings Banks<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-eb600733793037fff9f8f79e972b2aa2\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"M3_Broad_Money\"><\/span><strong>M3 (Broad Money)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>M3 is the sum of<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>M1, and<\/li>\n\n\n\n<li>Net Time Deposits with the Banking System<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-3bcc2dbecbab26d3217a93988dca9292\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"M4\"><\/span><strong>M4<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>M4 is the sum of<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>M3, and<\/li>\n\n\n\n<li>Total Deposits with Post Office Savings Organizations (excluding National Savings Certificate)<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-8474160d84f1bcb1a347c937e97c5050\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"New_Monetary_Aggregates\"><\/span><strong>New Monetary Aggregates<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Working Group on Money Supply: Analytics and Methodology of Compilation (Chairman: Dr. Y.V. Reddy), in 1998, recommended the compilation of 4 monetary aggregates on the basis of the balance sheet of the banking sector in conformity with the norms of progressive liquidity. The RBI has started publishing these new monetary aggregates as a measure of supply of money:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>NM0 (Monetary Base)<\/li>\n\n\n\n<li>NM1 (Narrow Money)<\/li>\n\n\n\n<li>NM2<\/li>\n\n\n\n<li>NM3 (Broad Money)<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-d41a51555a3df908d482c3ee795de642\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"NM0_Monetary_Base_or_Reserve_Money\"><\/span><strong>NM0 (Monetary Base or Reserve Money)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>NM0 is the sum of<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Currency in Circulation<\/li>\n\n\n\n<li>Bankers\u2019 Deposits with RBI, and<\/li>\n\n\n\n<li>\u2018Other\u2019 Deposits with RBI<\/li>\n<\/ul>\n\n\n\n<p>Here, \u2018Other\u2019 deposits with RBI comprise mainly:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Deposits of quasi-government and other financial institutions including primary dealers,<\/li>\n\n\n\n<li>Balances in the accounts of foreign Central banks and Governments,<\/li>\n\n\n\n<li>Accounts of international agencies such as the International Monetary Fund, etc.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-a64ad7020d77fe2c874740e7915a77e3\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"NM1_Narrow_Money\"><\/span><strong>NM1 (Narrow Money)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>NM1 is the sum of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Currency with the Public<\/li>\n\n\n\n<li>Current Deposits with the Banking System<\/li>\n\n\n\n<li>Demand Liabilities Portion of Savings Deposits with the Banking System, and<\/li>\n\n\n\n<li>\u2018Other\u2019 Deposits with RBI<\/li>\n<\/ul>\n\n\n\n<p>Thus, NM1 includes currency with the public and non-interest-bearing deposits with the banking sector including that of RBI.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-2eabb36f03d0e6f61770dd29e2756eb6\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"NM2\"><\/span><strong>NM2<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>NM2 is the sum of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>NM1, and<\/li>\n\n\n\n<li>Short-term Time Deposits of Residents (including and up to the contractual maturity of 1 year)<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-524e60c2674398b21740be7d8fde5075\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"NM3_Broad_Money\"><\/span><strong>NM3 (Broad Money)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>NM3 is the sum of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>NM2,<\/li>\n\n\n\n<li>Long-term Time Deposits of Residents, and<\/li>\n\n\n\n<li>Call\/Term Funding from Financial Institutions.<\/li>\n<\/ul>\n\n\n\n<p>Thus, NM3 captures the complete balance sheet of the banking sector.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-70b2f582f6b1f921ab21c54ef3f7801e\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"Liquidity_Aggregates\"><\/span><strong>Liquidity Aggregates<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In addition to the New Monetary Aggregates, the Working Group had also recommended the compilation of three Liquidity Aggregates &#8211; L1, L2, and L3.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-1fa2748dac9152c1a21cb1a257287ef4\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"L1\"><\/span><strong>L1<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>L1 is the sum of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>NM3, and<\/li>\n\n\n\n<li>All Deposits with the Post Office Savings Banks (excluding National Savings Certificates).<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-e59b2b2a9f0bfa96593f8d1cd473c963\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"L2\"><\/span><strong>L2<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>L2 is the sum of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>L1,<\/li>\n\n\n\n<li>Term Deposits with Term-Lending Institutions and Refinancing Institutions (FIs),<\/li>\n\n\n\n<li>Term Borrowing by FIs, and<\/li>\n\n\n\n<li>Certificates of deposit issued by FIs.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-940261ceab1f86b5024df21b6c9fff62\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"L3\"><\/span><strong>L3<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>L3 is the sum of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>L2, and<\/li>\n\n\n\n<li>Public Deposits of Non-Banking Financial Companies (NBFCs)<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-945dadad8c01f52afabfe95afa7798d3\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"Velocity_of_Money\"><\/span><strong>Velocity of Money<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The velocity of money is a measurement of the <strong>rate at which money is exchanged<\/strong> in an economy. In simple terms, it refers to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>the number of times that money moves from one entity to another, OR<\/li>\n\n\n\n<li>the number of times a unit of currency is used in a given period of time, OR<\/li>\n\n\n\n<li>the rate at which consumers and businesses in an economy collectively spend money.<\/li>\n<\/ul>\n\n\n\n<p>The velocity of money is usually measured as a ratio of GDP to a country\u2019s Total Money Supply. Thus,<\/p>\n\n\n\n<p><strong><em>Velocity of Money = GDP\/Total Money Supply<\/em><\/strong><\/p>\n\n\n\n<p><strong>Significance of Velocity of Money<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Indicator of Robustness of Economy<\/strong>: Velocity is important for measuring the rate at which money in circulation is used for purchasing goods and services. This helps investors gauge how robust the economy is.<\/li>\n\n\n\n<li><strong>Indicator of Inflation<\/strong>: It is also a key input in the determination of an economy\u2019s inflation calculation. Economies that exhibit a <strong>higher velocity of money<\/strong> have a higher <strong>rate of inflation<\/strong>, and vice versa.<\/li>\n\n\n\n<li><strong>Important for GDP Growth<\/strong>: A higher Velocity of Money is also important for ensuring higher GDP growth. This is illustrated as follows:\n<ul class=\"wp-block-list\">\n<li><strong><em>Velocity of Money = GDP\/Total Money Supply<br>Hence, GDP = Money Supply \u00d7 Velocity of Money<\/em><\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p>Thus, GDP cannot be controlled through the supply of money alone.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If there is an increase in money supply, but the velocity of money decreases, the GDP may stay the same or even decline.<\/li>\n\n\n\n<li>If the supply of money is decreased, but the velocity of money increases, GDP could increase.<\/li>\n<\/ul>\n\n\n\n<p>Therefore, an increase in the supply of money does not necessarily lead to an increase in GDP or inflation without taking the velocity of money into consideration.<\/p>\n\n\n\n<p>The concepts of <strong>Money and Money Supply <\/strong>are foundational to understanding economic dynamics. As economies continue to evolve, with digital currencies and new forms of transactions emerging, the definitions and implications of <strong>Money and Money Supply<\/strong> will likely adapt.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-c138d6e532bfb5a1f278de0728d1fb09\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"FAQs_on_Money_and_Money_Supply\"><\/span><strong>FAQs on Money and Money Supply<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1712043340168\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_Constitutes_Money\"><\/span><strong>What Constitutes Money?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Anything that can serve as a medium of exchange, a unit of account, a store of value, and be used for repayment of debt can be called Money. There are various types of money such as Commodity Money, Metallic Money, Paper Money, etc.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1712043350436\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_is_meant_by_%E2%80%98Currency_in_Circulation\"><\/span><strong>What is meant by \u2018Currency in Circulation\u2019?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>&#8220;Currency in Circulation&#8221; refers to banknotes and coins that are not held by the Central Bank or banking institutions, but are instead in the cash reserves of banks or in the hands of the public and are actively being used in an economy for transactions.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1712043372660\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"How_does_the_Central_Bank_control_the_Money_Supply\"><\/span><strong>How does the Central Bank control the Money Supply?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The Central Bank makes use of various monetary policy instruments to control the supply of money in an economy.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1712043385798\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_role_does_the_Supply_of_Money_play_in_Inflation\"><\/span><strong>What role does the Supply of <\/strong>M<strong>oney play in Inflation?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Inflation is more or less directly related to the money supply in an economy. The higher the supply of money, the higher the inflation, and vice versa.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1712043392848\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"How_does_the_Money_Supply_impact_interest_rates\"><\/span><strong>How does the Money Supply impact interest rates?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The supply of money and interest rates have an inverse relationship. This means that generally, as the supply of money in an economy increases, interest rates tend to decrease, and vice versa.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Money and Money Supply are the lifeline of an economy and central to our daily transactions..<\/p>\n","protected":false},"author":9,"featured_media":6884,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[62],"tags":[72],"class_list":["post-6871","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-indian-economy","tag-gs-3"],"_links":{"self":[{"href":"https:\/\/www.nextias.com\/blog\/wp-json\/wp\/v2\/posts\/6871","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/blog\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/blog\/wp-json\/wp\/v2\/comments?post=6871"}],"version-history":[{"count":8,"href":"https:\/\/www.nextias.com\/blog\/wp-json\/wp\/v2\/posts\/6871\/revisions"}],"predecessor-version":[{"id":6890,"href":"https:\/\/www.nextias.com\/blog\/wp-json\/wp\/v2\/posts\/6871\/revisions\/6890"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/blog\/wp-json\/wp\/v2\/media\/6884"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/blog\/wp-json\/wp\/v2\/media?parent=6871"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/blog\/wp-json\/wp\/v2\/categories?post=6871"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/blog\/wp-json\/wp\/v2\/tags?post=6871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}