M2
2
7.9
- noun
- Specialized
- The M2/GDP ratio exceeded unity beginning in 1982 and reached a peak of 2.38 in 1998.
- M2 was 2.8 percent
- part of M2
- M2 increased
Examples
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The monetary base and M2 are expanding dramatically, thanks to the Federal Reserve's policy of currency debasement.
Blog text (22) -
The M2 measure showed that the money supply was increasing at an alarming rate.
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The actual increase in U.S. M2 in the six years
Academic text (2017) -
However, the larger part of M2 with no direct tie to total bank reserves did not follow the lead of the Fed.
Academic text (1992) -
During 1991, the Fed caused the part of M2 under its direct control to grow by 8.0 percent.
Academic text (1992) -
The ratio of M2 to gross domestic product rose from 7.1 percent to 30 percent between 1988 and 1994.
Academic text (1998) -
Its YoY growth rate increased slightly to 7.5%, so Real M2 remained steady at 5.3%.
Blog text (6) -
The second and largest category of M2 outside of the Fed's control consists of zero reserve requirement deposits.
Academic text (1992) -
For 1991 IV, about 80 percent of M2 consisted of bank deposits, and 86 percent of bank deposits were included in M2.
Academic text (1992) -
In the 1980s, Friedman changed his preferred aggregate from M2 to M1 (currency plus demand deposits).
Academic text (2018)
How Broad
Surface Forms
Morphology
M2 = M + 2
An alphanumeric conventional label for a monetary aggregate; its meaning is a technical convention, not derivable by a B1 learner from the components 'M' and '2'.
Etymology
M2 comes from a simple label for parts of the money supply: M stands for 'money' and the number 2 marks the second, wider group after M1. So M2 means 'more' kinds of money—cash plus savings and other items that are almost cash, which is why banks watch it to judge liquidity and inflation.