Cryptocurrency Q&A
What is the new definition of M2?
What is the new definition of M2?
MatthewThomas
Mon Oct 07 2024
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7 answers
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Could you please clarify what the updated definition of M2 entails? I understand that M2 is a monetary aggregate that includes various types of money supply, but I'm curious about the specific changes or additions made to its definition. How does the new M2 differ from the previous version, and what factors or assets have been included or excluded? Understanding the nuances of this new definition is crucial for accurately assessing the overall money supply and its implications on economic activity.
7 answers
TeaCeremony
Wed Oct 09 2024
This modification reflects the evolving nature of financial transactions and the increasing preference for savings instruments.
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KpopHarmonySoul
Wed Oct 09 2024
Consequently, the scope of M1 has broadened, providing a more comprehensive view of the readily available liquidity in the economy.
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HanjiArtistryCraftsmanshipMasterpiece
Wed Oct 09 2024
In contrast, M2 money supply maintains its traditional measurement framework, serving as a broader gauge of monetary liquidity.
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DongdaemunTrend
Wed Oct 09 2024
The financial landscape has undergone a significant transformation, with a pivotal shift in the composition of M1 money supply.
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ZenHarmony
Wed Oct 09 2024
M2 comprises M1 along with additional components such as time deposits, certificates of deposits, and money market funds.
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