1 thought on “What does the general currency M2 mean?”
Edward
01 Broadly of currency is an economics concept. It corresponds to narrow currency and is a form of currency supply. It is expressed in M2 that the currency supply is usually M2. M2's liquidity is relatively weak, which reflects the pressure of the pressure of inflation in the future and the changes in social needs. The broad currency M2 = M1 enterprise institutions regular deposits residential savings deposits. M2 is a broad currency. The so -called broad currency includes not only those liquidity cash, current deposits, but also a small liquidity, but a deposit currency with income. M1 reflects the real purchasing power of the economy; M2 also reflects reality and potential purchasing power. If the M1 growth rate is fast, the consumption and terminal market is active; if the M2 growth rate is fast, the investment and intermediate market are active. Central banks and commercial banks can determine monetary policy accordingly. M2 is too high and M1 is too low, indicating that the investment is overheating, the demand is not strong, and there is a risk of crisis; the M1 is too high M2 is too low, indicating that the demand is strong, the investment is insufficient, and there is a risk of price increases. The broad currency is an economics concept, corresponding to narrow currency, a form or caliber of currency supply. It is represented by M2, and its calculation method is to trading currency and regular deposits and savings deposits. This in my country is also divided into three levels of currency supply at this stage. The meaning is: M0: cash in circulation, that is, cash circulating outside the banking system; M1: narrow currency currency Supply, that is, M0 Enterprise and Institutions' current deposits; M2: Broadly of currency supply, that is, M1 enterprises and institutions regular deposits residential savings deposits. In these three levels, M0 is closely related to consumption changes and is the most active currency; M1 reflects the tight changes in residents and corporate funds. M0; M2 is weak liquidity, but it reflects the changes in total social demand and the pressure of future inflation. Generally, the currency supply is mainly called M2.
01 Broadly of currency is an economics concept. It corresponds to narrow currency and is a form of currency supply. It is expressed in M2 that the currency supply is usually M2. M2's liquidity is relatively weak, which reflects the pressure of the pressure of inflation in the future and the changes in social needs. The broad currency M2 = M1 enterprise institutions regular deposits residential savings deposits.
M2 is a broad currency. The so -called broad currency includes not only those liquidity cash, current deposits, but also a small liquidity, but a deposit currency with income.
M1 reflects the real purchasing power of the economy; M2 also reflects reality and potential purchasing power. If the M1 growth rate is fast, the consumption and terminal market is active; if the M2 growth rate is fast, the investment and intermediate market are active. Central banks and commercial banks can determine monetary policy accordingly. M2 is too high and M1 is too low, indicating that the investment is overheating, the demand is not strong, and there is a risk of crisis; the M1 is too high M2 is too low, indicating that the demand is strong, the investment is insufficient, and there is a risk of price increases.
The broad currency is an economics concept, corresponding to narrow currency, a form or caliber of currency supply. It is represented by M2, and its calculation method is to trading currency and regular deposits and savings deposits.
This in my country is also divided into three levels of currency supply at this stage. The meaning is:
M0: cash in circulation, that is, cash circulating outside the banking system;
M1: narrow currency currency Supply, that is, M0 Enterprise and Institutions' current deposits;
M2: Broadly of currency supply, that is, M1 enterprises and institutions regular deposits residential savings deposits.
In these three levels, M0 is closely related to consumption changes and is the most active currency;
M1 reflects the tight changes in residents and corporate funds. M0;
M2 is weak liquidity, but it reflects the changes in total social demand and the pressure of future inflation. Generally, the currency supply is mainly called M2.