Macro glossary
M2 Money Supply
A broad measure of US money supply including currency, checking deposits, savings deposits, and money-market accounts.
Definition
M2 captures cash-like balances available for transactions and near-term spending. A contracting M2 on a year-over-year basis is rare — the 2022-23 contraction was the first post-WWII instance. M2 growth has historically led nominal GDP growth by about 12 months.