Real M2 Money Stock
M2REAL • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
6,849.40
Year-over-Year Change
1.81%
Date Range
1/1/1959 - 6/1/2025
Summary
Real M2 Money Stock measures the inflation-adjusted money supply in the United States, reflecting the total amount of liquid money available in the economy after accounting for price level changes. This metric is crucial for understanding monetary conditions, potential inflationary pressures, and overall economic liquidity.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
The Real M2 Money Stock represents the broad money supply adjusted for inflation, providing economists with insights into the purchasing power of circulating money. Economists use this indicator to analyze monetary policy effectiveness, potential economic growth, and potential inflationary or deflationary trends.
Methodology
The Federal Reserve calculates Real M2 Money Stock by adjusting the nominal M2 money supply using the Consumer Price Index (CPI) to account for changes in purchasing power.
Historical Context
Policymakers and central bankers use this metric to assess monetary conditions, inform interest rate decisions, and evaluate the potential impact of monetary interventions.
Key Facts
- M2 includes cash, checking deposits, savings deposits, and money market securities
- Adjusting for inflation provides a more accurate representation of money's real value
- Significant changes can signal potential economic shifts or monetary policy impacts
FAQs
Q: What does Real M2 Money Stock indicate?
A: It shows the inflation-adjusted money supply, reflecting the actual purchasing power of money in circulation. This helps economists understand real monetary conditions beyond nominal figures.
Q: How is Real M2 different from nominal M2?
A: Nominal M2 is the raw money supply, while Real M2 adjusts for inflation using the Consumer Price Index, providing a more accurate representation of money's actual economic value.
Q: Why do economists track Real M2 Money Stock?
A: It helps analyze monetary policy effectiveness, potential economic growth, and provides insights into inflationary or deflationary pressures in the economy.
Q: How often is Real M2 Money Stock updated?
A: The Federal Reserve typically updates this data weekly, allowing for near-real-time monitoring of monetary conditions and economic liquidity.
Q: What are the limitations of Real M2 Money Stock?
A: While valuable, this metric should be used alongside other economic indicators for comprehensive analysis, as it doesn't capture all nuances of economic performance.
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Citation
U.S. Federal Reserve, Real M2 Money Stock [M2REAL], retrieved from FRED.
Last Checked: 8/1/2025