"M2"

M2? Yeah, it's like the squad of money supply, covering cash, checking deposits, and those chill 'near money' vibes you can flip into cash easily.💸

Our homies, the economists, be droppin’ M plus a number to define money levels, keeping it 100.💯

Peep this: there's a couple of money definitions, M1 and M2. Simplifying the chaos, ya know? 🤙

M2 is on that next-level vibe, definitely more woke than M1, which is just cash and checking accounts.✨

M2 is the star player, the real MVP in the inflation game, and central banks swoon over it for monetary policy.📈

FYI, how it's used depends completely on where it's at. Location, location, location! 🗺️

In the US, M1 is like stacking all your cash and checking balances. It’s what the streets call lit. 🔥

M1’s got coins and paper on lock—those treasures in circulation outside the U.S. Treasury's grip.💵

Seriously tight with currency are checkable deposits a.k.a demand deposits. It’s what you've got in your checking. 🏦

They called ‘em demand deposits 'cause when you hit up the bank for cash via check or debit, they gotta deliver that moolah “on demand.” 💳

Currencies and checking vibes together make M1, with the Federal Reserve always lurking, checking daily.👀

M2 ain’t just M1, it levels up with extra deposits. More money, more options, ya dig? 💰

M2 be flexin’ with an extended assortment of assets, mostly chillin’ with households. 🏡

M2's squad list brings M1 plus:

1. Savings deposits (yeah, think money market deposit accounts, MMDAs).
2. Small-denomination time deposits (basically, time-bound treasures under 100k).
3. Balances in retail money market mutual funds (MMMFs for the win!).

M2 spreads its wings to cover money that's in the liquid zone, not too stiff but ready to roll into cash flow as needed. 💦

This, my friend, is what you call “near money”.

The Federal Reserve is on the beat, dropping a weekly release like a track on Spotify with M1 and M2 details.🎧

In the UK, they be on that M4 grind—M2 ain't the hero there, capisce? 🇬🇧