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The FED changed its definition of M1 by including deposits that were previously only part of M2. M2 always includes M1. The surge in M1 in April 2020 is because
by greenpresident 5y ago
The FED changed its definition of M1 by including deposits that were previously only part of M2. M2 always includes M1. The surge in M1 in April 2020 is because its definition changed. Would you elaborate on why and when you believe M2 was changed to "look less bad"?
- nickysielicki 5y agoYou’re right and I both misread and misremembered which definition changed. The better graph to look at is the money base. https://fred.stlouisfed.org/series/BOGMBASE https://fred.stlouisfed.org/series/BOGMBASE