# What is M3 Money Supply? Definition, Components, and Economic Role

![M3: A a measure of the money supply that includes M2 plus large time deposits, institutional money market funds, short-term repos, and larger liquid assets.](https://www.investopedia.com/thmb/0y5PddtvmDQATSU6E0t4qWLAtmk=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/m3.asp-FINAL-1-1-b6e5063170d243feb0c99627e48a5364.png)

*— Investopedia / Joules Garcia*

## What Is M3?

M3 is the broadest measure of the [money supply](https://www.investopedia.com/terms/m/moneysupply.asp), incorporating [M2](https://www.investopedia.com/terms/m/m2.asp), large time deposits, and less liquid assets. M3 is distinct in that it emphasizes money as a store of value with its focus on less-liquid assets, unlike M0, M1, and M2, which include more liquid financial products. Although the Federal Reserve stopped publishing M3 data in 2006, some institutions, like the Federal Reserve Bank of St. Louis, continue to track it for economic analysis. Understanding M3's components is crucial for evaluating the broader financial ecosystem, particularly transactions involving larger financial institutions and corporations.

### Key Takeaways

*   M3 includes M2 money supply, large time deposits, and short-term repurchase agreements.
*   The Federal Reserve stopped publishing M3 data in 2006 due to its limited utility in policy decisions.
*   M3 serves as a broad measure of money supply, emphasizing money as a store of value.
*   M3's equal weighting of components is a limitation, impacting its relevance and use.
*   Despite its discontinuation by the Fed, M3 is still tracked by other institutions for economic analysis.

## Understanding M3's Place in Economic Analysis 

The money supply, or money stock, has several levels of liquidity. It includes all currency in circulation and liquid financial products, like [certificates of deposit](https://www.investopedia.com/terms/c/certificateofdeposit.asp) (CDs).

M3 is the broadest measure of the money supply, and focuses on money as a store of value. Less liquid assets are harder to convert into cash and can't be used right away.

### $20.7 Trillion

M3 for the United States as of November 2023 (latest data available).

Economists traditionally used M3 to estimate the money supply and help governments control inflation over time.

In order to determine M3, each M3 component is given [equal weight](https://www.investopedia.com/terms/e/equalweight.asp) during calculation. For example, M2 and large time deposits are treated the same and aggregated without any adjustments. While this does create a simplified calculation, it assumes that each component of M3 affects the economy in the same way, which is not the case in the actual economy.

The equal weighting is a limitation of M3, which is why it's no longer widely used.

## Reasons Behind the Fed's Discontinuation of M3

The [Federal Reserve](https://www.investopedia.com/terms/f/federalreservebank.asp) stopped tracking M3 in 2006, having shifted focus to M2 since the 1980s. In 1993, Fed Chairman Alan Greenspan said the Fed wouldn't use money aggregates like M2 for policy.

The Federal Reserve Bank of St. Louis and other sources still publish M3 data for economic analysis.

## How M3 Measures Up Against M0, M1, and M2

Think of M3 as a blend of M0, M1, and M2, plus the less liquid money supply parts.

M0 refers to the currency in circulation, such as coins and cash. [M1](https://www.investopedia.com/terms/m/m1.asp) includes M0, demand deposits, such as checking accounts, traveler's checks, and currency that is out of circulation but readily available.

M2 includes all of M1 and M0, plus savings deposits and certificates of deposit, which are less liquid than checking accounts. M3 includes all of M2, M1, and M0, and adds the least liquid parts of the money supply, like repurchase agreements that mature in days or weeks.

## What Is M1, M2, and M3 Money?

M1, M2, and M3 are classifications of money in the United States. M1 consists of all money in circulation as well as deposits in banks. M2 money includes M1 money plus savings deposits and money market funds. M3, which has been discontinued, includes M2 plus time deposits.

## What Is M4 Money?

M4 money is a classification of money in the United Kingdom that includes money that is circulated amongst the public, non-financial institutions, private sector retail and wholesale banks, and building society deposits.

## How Much M1 Money Is in Circulation?

As of August 2025, the seasonally adjusted M1 money in circulation is $18.8 trillion.

## The Bottom Line

M3 is the broadest measure of the money supply, incorporating M0, M1, M2, along with less liquid assets. It includes components like large time deposits and short-term repurchase agreements. M3's limitations in guiding monetary policy led to the Federal Reserve halting the publishing of M3 data in 2006, However, other institutions like the Federal Reserve Bank of St. Louis continue to track it for analytical purposes.

> **Article Sources**
>
> 1.  Board of Governors of the Federal Reserve System. "[H.6 Release--Discontinuance of M3](https://www.federalreserve.gov/releases/h6/discm3.htm)."
>     
> 2.  Federal Reserve Bank of St. Louis. "[Monetary Aggregates and Their Components: Broad Money and Components: M3 for United States](https://fred.stlouisfed.org/series/MABMM301USM189S)."
>     
> 3.  Federal Reserve Bank of San Francisco. "[How Did the Fed Change Its Approach to Monetary Policy in the Late 1970s and Early 1980s?](https://www.frbsf.org/education/publications/doctor-econ/2003/january/monetary-policy-1970s-1980s/)"
>     
> 4.  Federal Reserve Bank of Richmond. "[Monetary Aggregates: A User's Guide](https://www.richmondfed.org/~/media/richmondfedorg/publications/research/economic_review/1989/pdf/er750102.pdf)."
>     
> 5.  Bank of England. "[Explanatory Notes - M4](https://web.archive.org/web/20070809085936/http://www.bankofengland.co.uk/mfsd/iadb/notesiadb/m4.htm)."
>     
> 6.  Board of Governors of the Federal Reserve System. "[Money Stock Measures](https://www.federalreserve.gov/releases/h6/current/default.htm)."