How much money is there is the world?  More importantly, is there a
fixed amount that keeps getting redistributed among everyone, or does
the amount increase and decrease (i.e., can money be created and
destroyed)?  If so, how?

---

Request for Question Clarification by pafalafa-ga on 09 Dec 2003 11:36 PST

In the United States, the money supply (using the expansive definition
known as "M3") is about 8.3 trillion dollars (the supply can be...and
regularly is...increased when demanded by the needs of a growing
economy).

Equivalent figures are not readily available for many other countries,
but the US economy is generally regarded as accounting for 1/3 of the
global economy (Yes...we're that big!), which suggests that the global
money supply is on the order of 8.3 x 3 = 24.9 trillion dollars.

Is this the type of info you're looking for.  If so, I'd be happy to
document it in more detail as an answer to your question.

pafalafa-ga

---

Clarification of Question by rapaport-ga on 10 Dec 2003 06:38 PST

Thanks for the info giving an estimate of the (current) total amount. 
My deeper question is this:  Is that amount fixed, or does it vary? 
If it's fixed, that would presumably mean that if I receive, say, $100
(as a gift, or earned, or whatever), then someone (or several people)
must be $100 poorer:  Does money simply circulate around the world in
this way?  Or does the money supply sometimes increase or decrease? 
If so, what are the mechanisms for this?
(For instance, does the Treasury simply print up some more money from
time to time, not merely to replace bills that are worn out, but to
increase the total number of bills, hence the total amount of money?)