How do you find the value of M2?

By adjusting the money supply, the Fed can influence interest rates, inflation, and economic growth. Therefore, the accuracy and timeliness of the information about the money supply are essential for the effective functioning of the economy.

The monetary aggregates M1 and M2 are key indicators used to measure the money supply in an economy. M1 comprises of the most liquid forms of money, including currency in circulation and demand deposits held by individuals and businesses.

In contrast, M2 is a broader measure of the money supply that includes not only M1 but also other liquid assets such as savings deposits, money market funds, certificates of deposit, and other time deposits.

The Federal Reserve System, the central bank of the United States, plays a crucial role in monitoring the money supply. It tracks the amounts of both M1 and M2 regularly to assess the overall liquidity in the economy.

The Fed prepares a weekly release of information about the money supply, which provides valuable insights into the state of the economy and helps policymakers make informed decisions about monetary policy.