SPY & M2 Money Supply
A measure of the money supply that includes cash, checking deposits, and easily convertible near money.
SPY Price
M2 Money Stock
M2 Year-over-Year Growth
What It Measures
M2 includes: - **Currency** (physical cash in circulation) - **Checking deposits** (demand deposits) - **Savings deposits** (including money market deposit accounts) - **Small time deposits** (CDs under $100,000) - **Retail money market funds** M2 is the most commonly referenced money supply measure because it captures money that is readily available for spending.
Why It Matters
**Inflation Link**: Milton Friedman's monetarist theory holds that "inflation is always and everywhere a monetary phenomenon." **Liquidity Measure**: Shows the amount of money available in the economy. **Fed Policy Impact**: Reflects the cumulative effect of Fed policy actions. **Velocity**: M2 velocity (GDP/M2) shows how actively money circulates.
Data Sources
SPY: S&P 500 ETF daily OHLCV data (1993-02-02 to 2026-01-22)
M2 Supply: M2SL - M2 Money Supply from Federal Reserve
Units: Billions of Dollars, Seasonally Adjusted, Monthly