How True is the True Money Supply?

The Austrian economists hold that the so called true money supply is theoreticaly superior to the classical M1, M2 and M3. Using the data from the Czech Republic I verify in my thesis whether it really could be the case. The true money supply is the sum of the amount of cash and goods (cash equivalents) which could be redeemed during a period not exceeding the horizon specified at a fixed rate known in advance in cash. In addition, most market participants have to think that the amount of cash available for the purpose of such exchange is unlimited. Several true money supplies, that differ in the horizons of the included cash equivalents, are constructed based on the Czech National Bank (ČNB) data spanning the years from 2002 to 2012. For the comparison of the true money supplies and the M an elementary model is used based on the equation of exchange. The main finding is that the indicators don't considerably differ. Thus it seems that the true money supplies and M are practically the same. For all the indicators, however, the estimates of the coefficient of the model are significantly different from the quantitative theory of money predictions. That's why the results are to be interpreted with caution