True Money Supply

This thesis deals with the real money supply (True Money Supply). Monetary aggregates (M1, M2, M3) used in mainstream economics is that, in many respects inaccurate and therefore unsuitable. TMS monetary aggregates are preferable aggregates M1, M2, M3, because it counted some of the cash items twice, unlike M1, M2, M3, and therefore more accurately reflects the evolution in monetary economics. The aim of this work is based on established theory of money, count the real money supply (TMS1, TMS2) and investigate its characteristics and relationship with respect to selected economic indicators, which are: the monetary aggregate M2, the consumer price index (CPI), industrial producer price index (PPI), the discount rate, two-week repo rate, index of the Prague Stock Exchange (PX), the total volume of loans. Confrontation between TMS1 and TMS2 with selected economic indicators, can lead to a more accurate understanding of the causes of changes in the economy over the economic cycle. The theoretical part is to define the concept of money, creation, development, development of the banking system; commodity mode and paper (FIAT) money. The analytical part will try to uncover hidden phenomena and causal relationships between the real money supply and the development of the economy. The work is based on the methodology of the Austrian School of Economics, whose praxeologie seems to me the most because of its clarity and consistency. Without this theory, we could not understand the question: What else is money and what is not?