M2 includes a broader set of financial assets held principally by households. M2 consists of M1 plus:
(1) savings deposits (which include money market deposit accounts, or MMDAs);
(2) small-denomination time deposits (time deposits in amounts of less than $100,000); (3) balances in retail money market mutual funds (MMMFs).
Seasonally adjusted M2 is computed by summing savings deposits, small-denomination time deposits, and retail MMMFs, each seasonally adjusted separately, and adding this result to seasonally adjusted M1.
Subscribe to All American Investor via Email
Original content Bob DeMarco, All American Investor
No comments:
Post a Comment