The M2 Slowdown and Depository Intermediation: Implications for Monetary Policy
Congress requires that the Chairman of the Board of Governors of the Federal Reserve report semiannually on the System’s plans and objectives for monetary policy. Among its financial objectives, the Federal Reserve has placed the greatest emphasis on its target ranges for the M2 measure of money since around the mid-1980s. M2 comprises currency, checking and savings deposits, money market mutual funds (MMMFs), and certificates of deposit in denominations less than $100,000 (small CDs).
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