Federal Reserve Quietly Changes Definitions of M1 and M2

This article by Dave Kranzler discusses how the Federal Reserve changed the definition of M1 and M2 and did so retroactively! The Fed moved savings deposits from M2 into M1. Why would they do this? Why did they make it retroactive, revising all the data back to May 2020? What does it mean? Read Kranzler’s assessment here….perhaps he is right. Will the gold and silver finally soar?

Published by markskidmore

Mark Skidmore is Professor of Economics at Michigan State University where he holds the Morris Chair in State and Local Government Finance and Policy. His research focuses on topics in public finance, regional economics, and the economics of natural disasters. Mark created the Lighthouse Economics website and blog to share economic research and information relevant for navigating tumultuous times.

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