Inflation Caused By Government Policies - M1 and M2

M1: Components: Currency in circulation (physical money held by the public, excluding amounts held by banks). Demand deposits at commercial banks (checking accounts). Other liquid deposits, including travelers' checks and other checkable deposits.

M2: Components: All of M1. Savings deposits (savings accounts). Time deposits under $100,000 (small-denomination time deposits, such as certificates of deposit or CDs). Retail money market mutual fund shares.