M2: Difference between revisions
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imported>Doug Williamson m (Add "than M1".) |
imported>John Grout (→See also: To add cross reference to Divisia money) |
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* [[M1]] | * [[M1]] | ||
* [[M3]] | * [[M3]] | ||
* [[M4]] | |||
* [[Divisia money]] |
Revision as of 09:17, 7 April 2016
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.