Find the trend in the growth rate of m1 and m2

Reference no: EM13993258

Economic Research and Data > Statistical Releases and Historical Data > Money Stock Measures

After reviewing data on the money supply, complete the following assignment:

From this week's reading assignment, review the section "M1, M2, and M3." In that section, locate the data that the text provides on the money supply. Update this data based on the Government's most current data release.

Find the trend in the growth rate of M1 and M2. What accounts for differences in the growth rate of each money supply measure?

Summarize measurement issues in M1 and M2 identified by the Federal Reserve.H.6 (508)

For release at 4:30 p.m. Eastern Time; October 21, 2010

Table 1 Money Stock Measures Billions of dollars
Date	Seasonally adjusted		Not seasonally adjusted
Date	M1	M2	M1	M2
Oct 2008	1471.7	8009.8	1460.9	7960.3
Nov 2008	1516.9	8062.5	1512.0	8049.8
Dec 2008	1602.1	8255.3	1626.4	8265.3

Jan 2009	1583.5	8316.7	1575.1	8310.9
Feb 2009	1574.0	8356.7	1546.9	8338.3
Mar 2009	1577.4	8409.9	1590.6	8472.8
Apr 2009	1608.5	8364.3	1624.3	8469.1
May 2009	1608.5	8436.7	1613.9	8447.2
Jun 2009	1646.2	8453.0	1658.1	8458.0
Jul 2009	1649.9	8443.0	1654.9	8423.6
Aug 2009	1648.4	8419.7	1649.3	8398.4
Sep 2009	1660.8	8459.3	1639.9	8403.3
Oct 2009	1676.2	8492.1	1661.9	8434.2
Nov 2009	1687.5	8523.3	1680.8	8506.1
Dec 2009	1696.6	8542.8	1721.8	8548.7

Jan 2010	1680.7	8486.0	1672.0	8475.2
Feb 2010	1714.8	8545.7	1683.3	8519.8
Mar 2010	1713.1	8519.9	1728.3	8582.8
Apr 2010	1701.4	8490.6	1717.4	8606.4
May 2010	1706.0	8573.0	1711.0	8591.7
Jun 2010	1721.5	8604.6	1736.3	8617.5
Jul 2010	1716.4	8603.3	1722.4	8588.7
Aug 2010	1742.8	8649.4	1743.0	8615.8
Sep 2010 p	1765.6	8709.4	1743.4	8654.1

Percent change at seasonally adjusted annual rate	M1	M2
3 Months from Jun 2010 TO Sep 2010	10.2	4.9
6 Months from Mar 2010 TO Sep 2010	6.1	4.4
12 Months from Sep 2009 TO Sep 2010	6.3	3.0

1. M1 consists of (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of depository institutions; (2) traveler's checks of nonbank issuers; (3) demand deposits at commercial banks (excluding those amounts held by depository institutions, the U.S. government, and foreign banks and official institutions) less cash items in the process of collection and Federal Reserve float; and (4) other checkable deposits (OCDs), consisting of negotiable order of withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, credit union share draft accounts, and demand deposits at thrift institutions. Seasonally adjusted M1 is constructed by summing currency, traveler's checks, demand deposits, and OCDs, each seasonally adjusted separately.

2. M2 consists of M1 plus (1) savings deposits (including money market deposit accounts); (2) small-denomination time deposits (time deposits in amounts of less than $100,000), less individual retirement account (IRA) and Keogh balances at depository institutions; and (3) balances in retail money market mutual funds, less IRA and Keogh balances at money market mutual funds. Seasonally adjusted M2 is constructed by summing savings deposits, small-denomination time deposits, and retail money funds, each seasonally adjusted separately, and adding this result to seasonally adjusted M1.
p preliminary

Components may not add to totals due to rounding

Table 2 Money Stock Measures Billions of dollars
Period ending	Seasonally adjusted						Not seasonally adjusted
	M1			M2			M1			M2
	13-week average	4-week average	week average	13-week average	4-week average	week average	13-week average	4-week average	week average	13-week average	4-week average	week average
Jul 19, 2010	1712.2	1719.1	1704.0	8578.4	8600.3	8606.4	1721.0	1729.8	1696.9	8596.1	8595.8	8586.3
Jul 26, 2010	1714.4	1714.1	1724.5	8588.4	8599.1	8611.3	1722.1	1716.8	1757.0	8597.3	8590.0	8545.6

Aug 2, 2010	1714.2	1716.5	1734.5	8597.0	8610.4	8627.9	1722.8	1727.5	1785.0	8600.1	8584.6	8594.4
Aug 9, 2010	1716.6	1723.7	1731.7	8604.4	8620.6	8636.8	1725.1	1733.3	1694.3	8603.9	8590.5	8635.5
Aug 16, 2010	1719.3	1727.7	1720.2	8608.4	8628.7	8638.8	1727.4	1735.4	1705.1	8605.2	8604.0	8640.5
Aug 23, 2010	1722.5	1732.0	1741.7	8613.4	8638.5	8650.4	1729.8	1734.3	1752.6	8607.5	8614.4	8587.2
Aug 30, 2010	1726.1	1742.2	1775.1	8619.0	8651.8	8681.3	1733.2	1740.6	1810.4	8607.0	8614.1	8593.2

Sep 6, 2010	1730.0	1751.2	1767.6	8624.7	8665.1	8690.0	1735.8	1747.9	1723.6	8608.1	8624.2	8676.0
Sep 13, 2010	1734.6	1759.6	1754.1	8633.7	8679.3	8695.4	1736.5	1743.6	1687.8	8611.9	8636.4	8689.2
Sep 20, 2010	1737.0	1763.1	1755.4	8641.3	8692.7	8703.9	1735.9	1738.2	1731.1	8615.0	8652.2	8650.5
Sep 27, 2010	1739.7	1764.1	1779.3	8650.3	8705.7	8733.3	1735.0	1735.1	1797.9	8618.0	8655.7	8607.0

Oct 4, 2010 p	1744.6	1769.5	1789.2	8663.4	8721.4	8752.8	1738.3	1750.6	1785.4	8623.7	8659.3	8690.6
Oct 11, 2010 p	1750.0	1774.2	1772.9	8675.8	8736.7	8756.7	1741.5	1756.7	1712.2	8631.2	8664.5	8710.0

Percent change at seasonally adjusted annual rate	M1	M2
Thirteen weeks ending October 11, 2010 from thirteen weeks ending:
Jul 12, 2010 (13 weeks previous)	9.1	5.1
Apr 12, 2010 (26 weeks previous)	5.3	3.7
Oct 12, 2009 (52 weeks previous)	5.7	2.7

Note: Special caution should be taken in interpreting week-to-week changes in money supply data, which are highly volatile and subject to revision.

p preliminary

Components may not add to totals due to rounding

Table 3 Seaonally Adjusted Components of M1 Billions of dollars
Date	Currency	Traveler's checks	Demand deposits	Other checkable deposits
Date	Currency	Traveler's checks	Demand deposits	At commercial banks	At thrift institutions	Total
May 2009	849.2	5.3	417.6	193.4	143.1	336.5
Jun 2009	852.3	5.2	439.3	208.7	140.6	349.3

Jul 2009	854.2	5.1	436.0	213.4	141.3	354.7
Aug 2009	857.8	5.1	427.2	217.3	141.1	358.4
Sep 2009	861.5	5.1	430.5	220.4	143.3	363.7

Oct 2009	862.7	5.1	432.8	226.1	149.6	375.6
Nov 2009	861.8	5.1	435.5	236.4	148.7	385.1
Dec 2009	862.2	5.1	443.7	234.1	151.4	385.6


Jan 2010	861.2	5.1	438.0	221.6	154.9	376.5
Feb 2010	867.3	5.1	457.9	228.0	156.6	384.5
Mar 2010	871.6	5.0	447.1	235.0	154.3	389.3

Apr 2010	877.3	5.0	451.8	214.2	153.1	367.3
May 2010	881.2	4.9	448.2	216.2	155.5	371.7
Jun 2010	883.1	4.8	459.2	223.0	151.4	374.3

Jul 2010	886.5	4.7	454.2	220.5	150.6	371.1
Aug 2010	892.8	4.7	469.3	224.3	151.7	376.0
Sep 2010 p	899.7	4.7	479.2	228.1	153.8	382.0



Week ending
Aug 16, 2010	892.2	4.7	454.3	219.4	149.6	369.0
Aug 23, 2010	893.9	4.7	464.0	227.1	152.0	379.1
Aug 30, 2010	895.5	4.7	486.7	233.6	154.6	388.1

Sep 6, 2010	896.7	4.7	490.4	219.7	156.1	375.8
Sep 13, 2010	897.9	4.7	476.9	219.4	155.1	374.6
Sep 20, 2010	899.9	4.7	469.3	228.3	153.3	381.6
Sep 27, 2010	902.0	4.8	480.6	239.9	152.1	392.0

Oct 4, 2010 p	903.9	4.8	494.7	230.5	155.4	385.9
Oct 11, 2010 p	904.9	4.8 e	481.4	225.1	156.7	381.8

1. Currency outside U.S. Treasury, Federal Reserve Banks and the vaults of depository institutions

2. Outstanding amount of U.S. dollar-denominated traveler's checks of nonbank issuers. Traveler's checks issued by depository institutions are included in demand deposits.

3. Demand deposits at domestically chartered commercial banks, U.S. branches and agencies of foreign banks, and Edge Act corporations (excluding those amounts held by depository institutions, the U.S. government, and foreign banks and official institutions) less cash items in the process of collection and Federal Reserve float.

4. NOW and ATS balances at domestically chartered commercial banks, U.S. branches and agencies of foreign banks, and Edge Act corporations.

5. NOW and ATS balances at thrift institutions, credit union share draft balances, and demand deposits at thrift institutions.
e estimated

p preliminary

Components may not add to totals due to rounding.

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Reference no: EM13993258

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