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18880 to 21200 this year is a 12.78% increase. Last year 2020, it said M2 grew 25%. It’s notable that the calculation for M2 changed. “Before May 2020, M2 con
by webinvest 5y ago
18880 to 21200 this year is a 12.78% increase. Last year 2020, it said M2 grew 25%.
It’s notable that the calculation for M2 changed.
“Before May 2020, M2 consists of M1 plus (1) savings deposits (including money market deposit accounts); (2) small-denomination time deposits (time deposits in amounts of less than $100,000)”
“Beginning May 2020, M2 consists of M1 plus (1) small-denomination time deposits (time deposits in amounts of less than $100,000)”
Does that mean savings accounts and money market accounts are no longer included in M2?
- Majromax 5y agoFrom https://www.federalreserve.gov/feeds/h6.html https://www.federalreserve.gov/feeds/h6.html >> Consequently, [February 23 2021]'s H.6 statistical release combines release items "Savings deposits" and "Other checkable deposits" retroactively back to May 2020 and includes the resulting sum, reported as "Other liquid deposits," in the M1 monetary aggregate. This action increases the M1 monetary aggregate significantly while leaving the M2 monetary aggregate unchanged.
- webinvest 5y agoOkay so they were moved to M1 —- which is included in M2 so M2 aggregate is unchanged.