What Is the Total Amount of Circulated Money
The total amount of circulated money refers to all physical cash and digital monetary assets actively used in payments and transactions across the global economy. The broadest common measure is M2, which includes cash, demand deposits, and near-money assets like savings deposits and money market funds. As of the latest public data, global M2 exceeds 100 trillion USD, driven by central bank balance sheet expansions and commercial bank lending. The narrowest measure, M0, covers only physical banknotes and coins in circulation plus central bank reserves, and it is a small fraction of total M2. For a breakdown of money supply definitions, see the Federal Reserve's Money Measures page Federal Reserve Money Measures.
Money supply data is published by central banks such as the Federal Reserve, European Central Bank, Bank of Japan, and People's Bank of China, with each country defining M0, M1, and M2 slightly differently. The International Monetary Fund aggregates selected series in its World Economic Outlook and International Financial Statistics databases, enabling cross-country comparisons of the total amount of circulated money. In the United States, M1 includes physical currency, demand deposits, and other checkable deposits, while M2 adds savings deposits, small time deposits, and retail money market funds. Because M2 captures most liquid assets households and firms use for spending, it is widely treated as the best proxy for the total amount of circulated money in modern economies.
How Much Money Is Actually in Circulation
Physical cash in circulation has grown steadily, with the U.S. Federal Reserve reporting that total U.S. currency in circulation surpassed 2.5 trillion USD in recent years, driven by demand for small bills and international use of the dollar. The Eurosystem reports that euro banknotes in circulation exceed 1.5 trillion EUR, reflecting the currency's role in trade and as a reserve asset. In China, the People's Bank of China publishes M0 figures that show steady growth in physical yuan in circulation alongside rapid digital payment adoption. For global cash trends, see the Bank for International Settlements' statistics on currency in circulation BIS Currency in Circulation.
Digital money now dominates the total amount of circulated money, as most transactions are settled through bank deposits, electronic transfers, and instant payment systems rather than physical notes. Central bank digital currency projects, such as the digital euro and the e-CNY pilot, aim to create new forms of circulated central bank money that are programmable and traceable. Commercial bank money, created whenever a bank issues a loan, accounts for the vast majority of broad money supply because each loan creates a matching deposit. The Federal Reserve's H.6 release provides weekly and monthly data on the total assets and liabilities of Federal Reserve Banks, including currency and deposits Federal Reserve H.6 Release.
Key Drivers and Risks of Money Supply Growth
Central bank asset purchases, also known as quantitative easing, are the primary driver of rapid growth in the total amount of circulated money since the global financial crisis and the COVID-19 pandemic. When central banks buy government bonds or other assets from banks, they credit reserve accounts, expanding the monetary base and enabling further lending and deposit creation. Fiscal deficits financed by central bank purchases can accelerate this process, as governments spend newly created reserves into the economy while the central bank absorbs the resulting debt. The European Central Bank's Asset Purchase Programme and the Bank of Japan's yield curve control policies are prominent examples of large-scale money creation efforts