What does m2 growth mean?
The concept of m2 growth rate: the broad money supply (M2) refers to the cash circulating outside the banking system plus corporate deposits, residents' savings deposits and other deposits, including all forms of money that may become real purchasing power, which usually reflects the changes in total social demand and the pressure of future inflation. In recent years, many countries have taken M2 as the control target of money supply. According to the definition of the International Monetary Fund: M 1= currency+demand deposit. M2=M 1+ time deposit+savings deposit+foreign exchange deposit. The growth rate of M2M 1 means that M2M 1 has a faster growth rate, indicating that the money supply is increasing. The increase in loan growth means an increase in loan amount, indicating an increase in money demand. CPI is the abbreviation of consumer price index. CPI is directly linked to inflation, and rising CPI means inflation.