M2: Difference between revisions
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imported>Doug Williamson m (Link with Money supply page.) |
imported>Doug Williamson m (Add "than M1".) |
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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. | ||
Revision as of 17:01, 20 January 2014
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.
