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What is the growth rate of M2 M 1?
According to the definition of the International Monetary Fund:
M 1= currency+demand deposit.
M2=M 1+ time deposit+savings deposit+foreign exchange deposit.
The growth rate of M2 M 1 means that the growth rate of M2 M 1 is faster, indicating that the money supply is increasing.
The increase in loan growth means an increase in loan amount, indicating an increase in money demand.
CPI is the abbreviation of consumer price index. CPI is directly linked to inflation, and rising CPI means inflation.
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