M2

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.

See also

• Broad money
• M1
• M3
• M4
• Divisia money