M2 Money Supply

The M2 money supply is a measure of the total amount of money available in an economy, including cash, checking and savings accounts, and other near-money assets like small time deposits and retail money market funds. It reflects the money that people and businesses can readily use for spending or saving. M2 provides insight into the liquidity and overall financial health of the economy, helping policymakers and analysts understand inflation, economic growth, and monetary policy impacts. Essentially, it captures the broader money that can quickly circulate and influence economic activity.