= recessions
( HINT: Click-and-drag left-to-right on a chart to zoom in to a specific date range. Double-click on a chart to zoom back out. )
M2 Velocity of Money Chart
This chart shows the year-over-year changes in the M2 Velocity of Money (defined as nominal GDP divided by M2), in relation to the S&P 500.Note that the Velocity of Money slows during recessions, and the slowdown can linger for many months.
Click here to see a chart for the M1 Velocity of Money. M1 : Equals the Monetary Base (M0), plus checkable deposits and traveler's checks (assets that can be used to pay bills and debts). M2 : Equals M1, plus savings deposits, money market deposits, and time deposits less than $100,000. For many, M2 is the figure to watch in forecasting inflation.