m2
Noun: A classification of a country's money supply that includes all components of M1 (such as physical currency and checkable deposits) plus certain less liquid assets, primarily savings deposits, money market deposit accounts, and small-denomination time deposits (like certificates of deposit under a specific, large threshold).
M2 is used as a standard economic indicator to gauge the total amount of money circulating in an economy that is readily available for spending and saving. It is a broader measure than M1. - Economists monitor M2 growth to understand inflationary pressures. - The central bank's report showed a 5% increase in the M2 money supply last quarter.
- "M2 money supply": The full term often used in formal economic contexts.
- Analysts are concerned about the rapid expansion of the M2 money supply.
- "M2 aggregate": Another term emphasizing it is a composite measure.
- The M2 aggregate includes near-money assets.
- M1: A narrower measure of the money supply, including only the most liquid forms like cash and demand deposits.
- M3: An even broader (though less commonly highlighted) measure that includes M2 plus large time deposits, institutional money market funds, and other larger liquid assets.
- Money Supply: The entire quantity of currency and other liquid instruments in a country's economy.
- Broad Money (in some economic contexts)
- Monetary Aggregate M2
M2 is a technical term from economics and finance. It is not typically used in idioms, phrasal verbs, or everyday conversation. Its meaning is fixed and refers specifically to this monetary classification.
- a measure of the money supply; M1 plus net time deposits (other than large certificates of deposit)