BoJ M3 Money Stock y/y evaluates a change in cash and residual assets which enterprises and individuals can use for making payments, as well as in deposits at depository institutions and time deposits, in the reported month compared to the same month a year ago.
The Money Stock indicator characterizes inflation in the country. Excess money supply growth potentially can cause inflation and generate fears that the government may tighten money growth by allowing the interest rates to rise, which in turn lowers future prices.