[tryitnow]

The increase is not as dramatic as this chart makes it out to be. It's more on the order of ~25%, not 300%+.

This is largely a function of a re-categorization of certain types of accounts: https://fredblog.stlouisfed.org/2021/01/whats-behind-the-rec...

From what I can understand a lot of accounts that used to be categorized as M1 are now categorized as M2.

M1 is a component of M2. So to get a better understanding of the real impact we should look at how M2 has changed: https://fred.stlouisfed.org/series/M2NS

The increase in M2 is around 25%.

Still pretty substantial and it looks to be way beyond the historical norm, so I think we should be concerned.

But maybe we should re-calibrate our concern by an order of magnitude.