M2 what does it mean

If by any chance you spot an inappropriate image within your search results please use this form to let us know, and we'll take care of it shortly. Term » Definition. Word in Definition. Princeton's WordNet 0. Freebase 0. Suggested Resources 0. Matched Categories Money Supply. How to pronounce M2? Alex US English. David US English.

Mark US English. Daniel British. Libby British. Mia British. Karen Australian. Hayley Australian. Natasha Australian. Veena Indian. Broadly, M2 is widened to include money that is not completely liquid, but that can be quickly converted into cash or back into current accounts. Compare features. The risks of loss from investing in CFDs can be substantial and the value of your investments may fluctuate. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

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IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. The supply never shrank year-over-year YOY at any point in that period.

These accelerated periods coincided with recessions and economic weakness, during which expansionary monetary policy was deployed by the central bank. Federal Reserve. Monetary Policy. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page. These choices will be signaled globally to our partners and will not affect browsing data.

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Economy Monetary Policy. What is M2? Key Takeaways M2 is a measure of the money supply that includes cash, checking deposits, and easily convertible near money. 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.