<p>The video gives the impression that the Fed "sets" the money supply. However this is not true at all. Surprisingly the money supply is mostly determined by private banks and the amount of lending that they do. The Fed then has some things it can do to <em>influence</em> the money supply. It's a system called <a href="http://www.monetary.org/wp-content/uploads/2016/03/money-creation-in-the-modern-economy.pdf" rel="nofollow noreferrer">fractional reserve banking</a> and its very hard to get your head round. For a less technical explanation, watch <a href="https://www.youtube.com/watch?v=CI5CFQXJxcA" rel="nofollow noreferrer">this</a>.</p>

<p>You will learn that there is more than one possible definition of "the money supply" (M1, M2 etc). The amount of each can be found at the <a href="https://fred.stlouisfed.org/" rel="nofollow noreferrer">St Lois Fed website</a> - try doing a search for "money".</p>

CC BY-SA 3.0
2017-01-05T10:55:50.970Z
2017-01-05T10:55:50.970Z
Mick
<p>I was <a href="https://www.youtube.com/watch?v=XNu5ppFZbHo" rel="nofollow noreferrer">watching a video</a> about how money gets its value.  They say the answer has to do with how much money is in circulation.  But how does one find out how much money there is in circulation as set by the Fed?  </p>

<money>
How do you find out how much money is in circulation?
leeand00
# How do you find out how much money is in circulation?

(Asked by: username_0 on 2017-01-05)

I was [watching a video](https://www.youtube.com/watch?v=XNu5ppFZbHo) about how money gets its value. They say the answer has to do with how much money is in circulation. But how does one find out how much money there is in circulation as set by the Fed?

**Tags:** money


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## 1 answers

### Answer by username_1 on 2017-01-05. Score: 3

The video gives the impression that the Fed "sets" the money supply. However this is not true at all. Surprisingly the money supply is mostly determined by private banks and the amount of lending that they do. The Fed then has some things it can do to *influence* the money supply. It's a system called [fractional reserve banking](http://www.monetary.org/wp-content/uploads/2016/03/money-creation-in-the-modern-economy.pdf) and its very hard to get your head round. For a less technical explanation, watch [this](https://www.youtube.com/watch?v=CI5CFQXJxcA).

You will learn that there is more than one possible definition of "the money supply" (M1, M2 etc). The amount of each can be found at the [St Lois Fed website](https://fred.stlouisfed.org/) - try doing a search for "money".


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