Money Supply (M2)

Stock of money in circulation and deposits tracked as M1 and M2 aggregates; the monetarist policy anchor.

Specifications & Metrics

type

Leading

frequency

Monthly

publisher

Central banks (U.S. Federal Reserve H.6 release)

Core Principles & Analysis

• Since May 2020 the Fed counts savings deposits in M1; M2 adds small time deposits and retail money market fund balances.
• Velocity, nominal GDP divided by M2, links the aggregates to the quantity equation.
• Unstable velocity in the 1980s and early 1990s led the Fed to downgrade money-growth targets as a policy guide.

Sources

• Federal Reserve Board: Money Stock Measures (H.6)