📘 What is M1?
⬅️ Before 2020 (Classic)
M1 = C + D
C = Currency (cash in public hands)
D = Checking deposits (demand deposits + other checkable deposits)
(Traveler’s checks also counted but very small)
➡️ After 2020 (Current)
M1 = C + D + S
C = Currency (cash)
D = Checking deposits (checking accounts, NOW/ATS, CU drafts)
S = Savings deposits (including MMDAs)
🔑 Key change (May 2020): Savings deposits (S) were reclassified into M1. M1 quadrupled overnight — a definition change, not sudden money printing.
Definitions used (current M1):
M1 = Currency (C) + Checking (D) + Savings (S) |
M2 = M1 + Small Time (CD<$100k) + Retail MMF |
MB (aka “M0”) = C + Reserves (Res)
Pick a student activity
Result
MB
—
M1
—
M2
—
Choose an activity to see what changes and why — using the current (post-2020) M1 definition.