What does the Money Zero Maturity (MZM) measure in an economy?

Money Zero Maturity (MZM) is an important financial metric that measures the liquid money supply available for consumption and spending within an economy. It includes all money balances that can be quickly and easily converted into cash, such as currency in circulation and demand deposits, but excludes time deposits which are not immediately accessible without a penalty.

This measure is particularly relevant for economists and policymakers as it provides insight into the liquidity status of the economy, highlighting how much money is readily available for consumers and businesses to spend. An increase in MZM indicates a greater availability of funds for expenditure, which can stimulate economic activity and demand.

In contrast, other measures like total debt, savings in banks, or growth rates focus on different economic aspects. Total debt encompasses liabilities which may not reflect liquidity, while savings in banks denote the amount not in circulation. The growth rate provides an overview of economic performance but does not directly represent the liquidity available for immediate spending. Therefore, the measurement of MZM is specifically focused on liquid assets, making it the correct answer in this context.