Virtual currency vs M1
1. The meaning of M1 is different:
M1 reflects the real purchasing power in the economy; M2 reflects both real and potential purchasing power. If M1 grows fast, consumption and terminal market will be active; If M2 grows fast, investment and intermediate market will be active
the central bank and commercial banks can judge monetary policy based on this. M2 is too high and M1 is too low, which indicates that investment is overheated, demand is not strong and there is a risk of crisis; M1 is too high and M2 is too low, indicating strong demand, insufficient investment and the risk of price rise
2. Different types of deposits:
M1 includes cash (paper currency or subsidiary currency), traveler's check, current deposit or other check deposits. These currencies can be directly used as a medium of exchange for various transactions and payments
M2 refers to adding other savings deposits (such as time deposits of banks, balance of money market mutual funds and deposits of other financial institutions) to M1. The amount of money in circulation is also called money stock
In definition:the current division of monetary level in China is as follows:
narrow money (M1) = M0 + unit current deposit that can be paid by check
broad money (M2) = M1 + household savings deposit + unit fixed deposit + unit other deposit + securities company customer margin
extended data:
influence M1 Reasons for M2 value:
1. For example, the hot stock market will affect the change of M1 value. Many people will put time deposits and some assets into the stock market, which will accelerate the rise of M1
If the growth rate of M1 is less than that of M2 in a long period of time, it indicates that the alternative investment opportunities are decreasing in the future, enterprises and residents choose to deposit their funds in banks on a regular basis, and the micro indivial profitability is declining If the growth rate of M1 is greater than that of M2 in a long period of time, it indicates that the economic prosperity is rising, the expansion is fast, the transactions between enterprises and residents are active, and the profitability of micro entities is strong 4. The more liquid part of the currency structure changes into the less liquid part, which will affect the investment and economic growth
in a word, M1 and M2 should maintain coordinated growth, and any turbulence in any value is not concive to the development of the national economy
During the Spring Festival holiday, Beijing Digital RMB pilot activities are in full swing, with many new functions appearing. The red envelope of digital RMB is in Beijing; Celebrate the new year on the spot; The new experience of payment is provided by more than 80% of the people, attracting the online and offline lottery winners to actively try. From 21:00 on February 10 to 24:00 on February 17, the winners of Beijing Digital RMB red envelopes can spend in the designated merchants in Wangfujing business district or the app zone of Jingdong. On the afternoon of the 12th, as the winning & lt; Lucky & quot; First, the reporter came to Wangfujing to experience the offline consumption of digital RMB
the reporter saw in the xindong'an branch of instrial and Commercial Bank of China, which is located in Wangfujing Street, that many ATMs are pasted with & lt; Digital RMB & quot; The red logo of the. The bank's staff told reporters that these ATMs are online with the function of digital RMB deposit and withdrawal. The reporter saw that ATM machine can choose to convert digital RMB back into cash, scan the two-dimensional code of ATM machine screen through ICBC mobile banking app, input the amount of cash withdrawal, and then the cash can appear. Of course, in addition to cash withdrawal, ATM can also deposit cash into digital RMB wallet, which makes two-way exchange more convenient. According to a staff member of ICBC xindong'an sub branch, bank ATMs provide two-way exchange of digital RMB and cash, which is in line with the usage habits of ordinary people and can promote the further entry of digital RMB into people's lives. In the process of circulation, digital RMB needs to be promoted by all parties. As can be seen from the pilot activities in many places, the six banks of instry, agriculture, China Construction, communications and postal savings have been deeply involved. However, the use of digital RMB red envelope does not need to bind any bank card, even if there is no bank account, it can be paid through digital RMB, which greatly improves the universality of financial services