This is good news. It means the Fed is doing its job. M2 is a measure of the amount of money in the economy, not a measure of inflation.
If the economy grows, the amount of money needed to lubricate the economy also grows. If the money supply doesn't grow while the economy does then we'd see significant deflation.
So we want these two measures to be relatively balanced, and they are. Yay!
Comments
This is good news. It means the Fed is doing its job. M2 is a measure of the amount of money in the economy, not a measure of inflation.
If the economy grows, the amount of money needed to lubricate the economy also grows. If the money supply doesn't grow while the economy does then we'd see significant deflation.
So we want these two measures to be relatively balanced, and they are. Yay!