I've been a fan of the M2 measure of money for a very long time. It's been the most stable definition of money, and it's had the best correlation to the economy of any other measure. As these charts show, the behavior of M2 over the past 15 years hasn't changed much at all. There have been periods of faster growth (2001-2003, 2008-2009), but they have been followed by slower growth, with the result that M2 has grown on average about 6% a year. That's a little faster than the 4.7% annualized growth rate of nominal GDP over the same period, but not by much. Importantly, there is nothing here to suggest that M2 is growing faster or slower than it has for a long time; no sign of any inflationary impact from QE2, and no sign of anything that might be deflationary.
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Claudette Ortiz Julia Stiles Marisa Miller AnnaLynne McCord Emma Heming
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