Money Supply
The total stock of money in circulation — tracked via M1, M2, and M3 aggregates — a key input to inflation and liquidity analysis.
The money supply measures the total amount of money available in an economy. It is segmented into aggregates: M1 (physical currency + demand deposits), M2 (M1 + savings accounts + money market funds), and M3 (M2 + large-time deposits).
Rapid expansion of the money supply — especially through QE or fiscal stimulus — is often a precursor to inflation, as more money chases the same amount of goods. Traders and economists track M2 growth as a longer-term inflation signal and a measure of liquidity available to flow into financial assets.