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Bridging the gap in macroeconomic analysis of the energy transition: combining medium- and long-term approaches
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m
Monetary aggregates
Measures of the amount of money in circulation. The Eurosystemmonitors three aggregates, from most to least liquid : M1 = coins + banknotes + overnight deposits ; M2 = M1 + deposits with an agreed maturity of up to 2 years ; M3 = M2 + repurchase agreements, shares or units in funds + debt securities with a maturity not exceeding 2 years.
p
Purchasing power
The amount of goods and services that can be purchased with income; it therefore depends on both the level of income and the level of prices.
i
Inflation expectations
Inflation rates expected by different categories of economic agents (households, business leaders, financial market participants) over different time horizons (1 year, 3 years, 5 years, 10 years, etc.).
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