Monetary Services Index: M2 (alternative)
MSIM2A • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
10,828.00
Year-over-Year Change
5.47%
Date Range
1/1/1967 - 12/1/2013
Summary
The Monetary Services Index (M2 alternative) tracks the liquidity and transaction services provided by M2 money supply components. It offers economists a nuanced view of monetary conditions and potential economic activity beyond traditional money supply measurements.
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
This index represents a sophisticated approach to measuring monetary services by weighting different components of M2 based on their transaction and liquidity characteristics. Economists use it to understand the efficiency and utility of money in the financial system.
Methodology
The index is calculated by the Federal Reserve using a complex weighting methodology that considers the transaction services and opportunity costs of different monetary assets.
Historical Context
Policymakers and central bankers use this index to assess monetary conditions and potential inflationary pressures in the broader economic landscape.
Key Facts
- Provides a more nuanced view of money supply than traditional measurements
- Weights monetary components based on their transaction utility
- Helps economists understand monetary system efficiency
FAQs
Q: What makes the M2 alternative index different from standard money supply measures?
A: The alternative index weights M2 components based on their transaction services and liquidity, offering a more sophisticated analysis of monetary conditions.
Q: How frequently is the Monetary Services Index updated?
A: The index is typically updated periodically by the Federal Reserve, with data available through economic research databases like FRED.
Q: Why do economists find this index valuable?
A: It provides deeper insights into monetary dynamics by considering the functional utility of different money supply components beyond their nominal value.
Q: Can this index predict economic trends?
A: While not a direct predictive tool, the index helps economists understand potential monetary pressures and economic activity patterns.
Q: What are the limitations of this index?
A: Like all economic indicators, it represents a snapshot of monetary conditions and should be interpreted alongside other economic data points.
Related News
U.S. Stock Market Rises Amid PCE Inflation Report Analysis
U.S. Stock Market Climbs Amidst Insights from PCE Inflation Report Investors in the U.S. stock market are focusing on the most recent PCE Inflation...
U.S. Treasury Yields Increase Amid Strong Economic Growth and Inflation Concerns
Treasury Yields Surge Amid Economic Growth and Inflation Concerns Treasury yields are surging as investors closely monitor the evolving U.S. econom...
Gen Z In the U.S. Shifts From Spending To Saving Habits
How Gen Z's Shift from Spending to Saving is Impacting the US Economy Recent trends indicate a significant shift in the spending habits of Gen Z, w...
S&P 500 Rises With Optimistic U.S. Inflation Report
S&P 500 Soars: Positive U.S. Inflation Developments The S&P 500, a primary stock index that tracks the performance of 500 major U.S. companies, has...
U.S. Stock Market Futures Rise On Inflation and Tariff News
US Stock Market Futures Rise Amid Inflation Data and Tariff News US stock market futures are on the rise, driven by significant updates in inflatio...
U.S. Treasury Yields Decline After Inflation Data Meet Expectations
US Treasury Yields Drop as Inflation Data Meets Expectations US Treasury yields have seen a noticeable decline recently, as the latest inflation da...
Related Trends
Citation
U.S. Federal Reserve, Monetary Services Index: M2 (alternative) [MSIM2A], retrieved from FRED.
Last Checked: 8/1/2025