ABSTRACT
One of the most persistent questions in monetary economics has been about the proper definition of money. In the nineteenth century, the disputes were about whether demand deposits, gradually increasing in usage, should be included in the definition of money or not. By the 1950s, their inclusion in money was beyond dispute but new questions had arisen about whether savings deposits should also be in the money measure. While savings deposits are now part of some of the commonly used definitions of money, a fresh set of questions has arisen about the inclusion of other financial assets in the monetary aggregates. This perpetual problem with the definition of money and the solutions proposed for it is the subject of this chapter.
