Calculating Per Capita 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?
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.