202211281218 - M2 Money Supply

Title: M2 Definition and Meaning in the Money Supply
URL: https://www.investopedia.com/terms/m/m2.asp
author: Investopedia
bib:
tags: #investing #term

• M2 is a measure of the money supply that includes cash, checking deposits, and easily-convertible 202211281223 - Near Money.
  • M1 Money Supply includes cash and checking deposits
• M2 is a broader measure of the money supply than M1, which just includes cash and checking deposits.
• M2 is closely watched as an indicator of money supply and future inflation, and as a target of central bank monetary policy.

The means of measuring a money supply are typically classified as “M”s and fall along a spectrum from narrow to broad monetary aggregates.

• Typically, the “M”s range from M0 to M3, with M2 typically representing a fairly broad measure.