Economists distinguish between broad money and narrow money. This is why, if you look at monetary statistics,

Question:

Economists distinguish between broad money and narrow money. This is why, if you look at monetary statistics, you will find time series for M1, M2, M3….. each corresponding to a different definition of the money stock.

Do you think the Monetary Model of the Exchange Rate involves a particular definition of the money stock? If so, which is correct –broad or narrow money?

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...

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