How much money is there in the whole world? The answer in a single graph

Quantifying the total amount of money in the world is a complex task, not because of the difficulty of accounting for each bill, coin or electronic money, but because of the complexity of establishing a border between what is money and what is not.

The experts have drawn up a graph that divides the different types of assets that can be considered as money and their amount in the world.

For example, the monetary aggregate M1, which is the definition of the most liquid money supply (includes cash in the hands of the public and money in current accounts) adds up to a total of 36.8 trillion dollars. If we remove the money in current accounts from this aggregate, that is, we are left only with physical bills and coins, the figure is 7.6 trillion dollars.

If, on the other hand, money is analyzed in a broader sense (monetary aggregate M2), physical money, current accounts and deposits, the figure reaches 90.4 billion dollars.

The bag and the house

Another curious figure is , which add up to a whopping 73 billion dollars. Also interesting is the level of debt worldwide, taking into account the liabilities of companies, households and governments, which exceeds 215 trillion dollars.

Housing is one of the most important assets in the world, since a large part of families spend a large part of their income investing in this type of real asset. The value of all residential homes, offices, stores, hotels, factories, and agricultural land is $217 trillion.

The highest figure within this classification comes from the notional value of all derivatives in the world, which comes out to 1.2 trillion. However, this sum of money is approximate and its value is notional. That is, it is the total value of the assets in a leveraged position. This term is commonly used in the derivatives markets, especially options and futures that employ the use of leverage, where a small amount of money invested can lead to a large exposure in the markets.

A whose price not only varies depending on parameters such as risk, term, etc., but also depends on the price reached in the market by another asset, which is called the underlying. The investor who acquires a derivative bets on a certain evolution of said underlying (up or down) in the stock markets.