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Economic Commentary

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).

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. This paper and its data are subject to revision; please visit clevelandfed.org for updates.

Suggested Citation

Carlson, John B., and Katherine Samolyk. 1992. “The M2 Slowdown and Depository Intermediation: Implications for Monetary Policy.” Federal Reserve Bank of Cleveland, Economic Commentary 9/15/1992.