The mystery of the money supply definition

Conclusion As we have shown, the validity of various definitions of money cannot be ascertained by means of a statistical correlation with national income. A valid definition can be established by following the essentialist approach—that is, by focusing on the distinguishing characteristics of an entity. Contrary to mainstream thinking, we have shown that the money supply definition remains intact, notwithstanding the deregulation of financial markets and the introduction of electronic means of payments.