Working Paper
Demand for M2 at the Zero Lower Bound: The Recent U.S. Experience
Schlusche, Bernd; Wong, Vivian; Judson, Ruth (2014-01-24)
In this paper, we re-examine the relationship between money and interest rates with a focus on the past few years, when the opportunity cost of M2 has dropped below zero. Until the late 1980s, a stable relationship between monetary aggregates and the opportunity cost of holding money--measured as the spread between the three-month Treasury bill yield and the deposit-weighted average return on M2 assets--existed, and played an integral role in the conduct of monetary policy (e.g., Moore et al.(1990)). This relationship broke down in the early 1990s, when M2 velocity increased beyond the range ...
Finance and Economics Discussion Series , Paper 2014-22

Journal Article
The Rise and Fall of M2
Neely, Christopher J. (2023-05-23)
Inflation followed M2 and monetary base growth up over the past three years, and now M2 and base growth are negative.
Economic Synopses