M2: Difference between revisions
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''Economics.'' | ''Economics.'' | ||
A broader measure of money supply | |||
A broader measure of [[money supply]] than M1, M2 includes M1 plus short-term time deposits in banks and 24-hour money market funds. | |||
M2 is the measure most widely used by economists to quantify the amount of money in circulation and explain different economic monetary conditions. | M2 is the measure most widely used by economists to quantify the amount of money in circulation and explain different economic monetary conditions. | ||
It is a key economic indicator used to forecast inflation rates. | It is a key economic indicator used to forecast inflation rates. | ||
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== See also == | == See also == | ||
* [[Broad money]] | * [[Broad money]] | ||
* [[Cash]] | |||
* [[Cash and cash equivalents]] | |||
* [[Divisia money]] | |||
* [[M0]] | |||
* [[M1]] | * [[M1]] | ||
* [[M3]] | * [[M3]] | ||
* [[M4]] | |||
* [[Money]] | |||
* [[Money supply]] | |||
[[Category:The_business_context]] | |||
Latest revision as of 19:40, 2 February 2024
Economics.
A broader measure of money supply than M1, M2 includes M1 plus short-term time deposits in banks and 24-hour money market funds.
M2 is the measure most widely used by economists to quantify the amount of money in circulation and explain different economic monetary conditions.
It is a key economic indicator used to forecast inflation rates.
