The Supply of money and money Market Equilibrium The money market equilibrium is the condition at which ms=Md M=kY-hi Therefore, given the money supply and nominal gdp. it is the interest variation that ensures the money market equilibriumThe Supply of Money and Money Market Equilibrium • The Money Market Equilibrium is the condition at which Therefore, given the money supply and nominal GDP, it is the interest variation that ensures the money market equilibrium. M s M d = M = k Y − hi