M2 gauge grows as short-term savers outdo themselvesKorea’s money supply rose in April from March as more funds were deposited in short-term savings accounts, the central bank said yesterday. The country’s M2, a narrow measure of the money supply, reached a seasonally adjusted 1,778.3 trillion won ($1.52 trillion) in April, up 0.6 percent from 1,768.5 trillion won for the previous month, according to the Bank of Korea. Compared with a year earlier, the M2 expanded 5.5 percent in April.
In January, the central bank began releasing seasonally adjusted money supply data using on-monthly comparisons to better gauge the short-term economic situation. M2 covers currency in circulation and all types of deposits with a maturity of less than two years at lenders and non-banking financial institutions, excluding those held by insurers and brokerage houses. Yonhap