Quote from: molecular on April 02, 2013, 10:20:42 PM

Quote from: caveden on April 02, 2013, 09:11:04 PM

Quote from: dree12 on April 02, 2013, 08:19:25 PM

M1 includes pretty much only cash. Money stored in bank accounts is not included.

M1 = bank accounts + cash.

are you sure? I thought it included non-bank deposits, but not bank deposits. Humongeous difference.

EDIT:

Quote from: op-referenced source

This entry, also known as "M1," comprises the total quantity of currency in circulation (notes and coins) plus demand deposits denominated in the national currency held by nonbank financial institutions, state and local governments, nonfinancial public enterprises, and the private sector of the economy, measured at a specific point in time. National currency units have been converted to US dollars at the closing exchange rate for the date of the information. Because of exchange rate movements, changes in money stocks measured in national currency units may vary significantly from those shown in US dollars, and caution is urged when making comparisons over time in US dollars. Narrow money consists of more liquid assets than broad money and the assets generally function as a "medium of exchange" for an economy.

Includes demand deposits in banks, doesn't include money owned by financial institutions.
So Joe Soap's (immediately accessible) cash in the bank is counted. ABC Pension Fund's cash is not counted.