This is in reference to https://fred.stlouisfed.org/series/M2

My question is how can i calculate the M2 value on per capita basis? Do i just divide it with the population by year?

  • $\begingroup$ That is obviously the definition so I'm not sure what you're asking. You may want to break it down by demographic segments, eg workers versus retirees and see the implications. $\endgroup$
    – D J Sims
    Jul 8, 2020 at 7:44

1 Answer 1


Yes if you would want to calculate it per capita basis then you would just divide by population of the country/monetary union for which you are calculating it in the same time period.

Per capita literary means per head, and whenever any quantity is calculated per capita terms whether its gross domestic product, gross national product, gross value produced, income and so on they are calculated as a ratio of total of the aggregate to population.

This being said I never seen this being done in research and I could not find any reference in google scholar as well. I was able to find this blog that does it although not for any research purpose. When we calculate aggregates on per capita basis its usually for some reason, for example per capita income gives us better idea about levels of material welfare in a country than just looking at total income, with money supply that is not really the case.

  • $\begingroup$ I am trying to conduct some research on inflation. Prices of assets such as homes, land and other commodities with adjusting it for inflation also. My thesis is not very well formed and i am still working on it but i am guessing, maybe because money supply has gone up perhaps (more now than in 2008 because of covid) we will see inflation in some sectors of the economy. $\endgroup$ Jul 6, 2020 at 22:27
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    $\begingroup$ @Slartibartfast if you want to adjust your measures for inflation then you dont really need to calculate money supply per capita. You can just find the price deflator for output/or other aggregate and apply that directly. Money supply is not necessary equivalent with inflation. Also good luck with your thesis $\endgroup$
    – 1muflon1
    Jul 6, 2020 at 22:32
  • $\begingroup$ I will look into price deflator. Could you please explain what you mean by other aggregate? $\endgroup$ Jul 6, 2020 at 22:37
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    $\begingroup$ @Slartibartfast I dont know what all variables you are working with but they all seem to be aggregates. If you work with average price of house in housing market that is an aggregate measure as opposite in having data for each individual listing. $\endgroup$
    – 1muflon1
    Jul 6, 2020 at 22:40

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