Real User Cost Index of MSI-M2 (preferred)
OCM2P • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
0.01
Year-over-Year Change
-9.35%
Date Range
1/1/1967 - 12/1/2013
Summary
The Real User Cost Index of MSI-M2 (preferred) tracks the adjusted cost of monetary services for specific financial instruments. This metric provides economists with insights into the changing economic value and efficiency of financial transactions.
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 the real economic cost of utilizing monetary services within the M2 money supply category, accounting for inflation and transaction complexities. Economists use it to understand the underlying efficiency and expense of financial intermediation.
Methodology
The index is calculated by the Federal Reserve using complex econometric models that adjust for inflation, transaction costs, and monetary service characteristics.
Historical Context
Policymakers and central bank analysts use this metric to assess monetary policy effectiveness and financial system efficiency.
Key Facts
- Part of the broader Monetary Services Index framework
- Adjusts for real economic costs of financial transactions
- Provides nuanced view of monetary system performance
FAQs
Q: What does the OCM2P index measure?
A: It measures the real economic cost of monetary services within the M2 money supply category, accounting for inflation and transaction complexity.
Q: Why is this index important?
A: The index helps economists and policymakers understand the efficiency and cost of financial intermediation in the monetary system.
Q: How often is this index updated?
A: The Federal Reserve typically updates this metric periodically, with frequency depending on data collection and computational requirements.
Q: Can this index predict economic trends?
A: While not a direct predictive tool, it provides valuable insights into monetary system performance and potential economic shifts.
Q: What makes this index 'preferred'?
A: The 'preferred' designation indicates a more refined and accurate methodology compared to alternative measurement approaches.
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Related Trends
Citation
U.S. Federal Reserve, Real User Cost Index of MSI-M2 (preferred) [OCM2P], retrieved from FRED.
Last Checked: 8/1/2025