Sunday, July 25, 2010

Money Supply, M2, Comparison Chart

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

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Original content Bob DeMarco, All American Investor