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); and (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.
Percent change year over year (directly below) looks a lot different than the simple growth of money supply chart.
Not adding as much "grease" these days.
Money Stock, M2, Percent Change
Money Stock, M2, Growth in Billions
Original content Bob DeMarco, All American Investor
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