US Money Supply – December 2010

The true money supply in December 2010 has grown to $2,345 billion, the annual growth rate has gone up to 5%.

money-supply-growth-december-2010

money-supply--december-2010

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7 thoughts on “US Money Supply – December 2010”

  1. What is the data source for “True Money Supply”? You credited FederalReserve.gov but a search there doesn’t turn it up.

  2. If I’ve done this right, then 2370.8 is the TMS figure for Dec-10, not including “sweeps”. The TMS for Nov-10 would be 2296.5 plus a sweeps of 802.4 would be 3098.9, much higher than your graph shows.

  3. Here’s my composition for Dec 2010:

    Cash 920.2
    +DemandDeposits 536.6
    +Govt. Deposits at Comm. Banks 1
    +Govt. Deposits at Federal Reserve 60.3
    +Government Note Balances at Depositories 2
    +Retail Sweeps (est.) 802.4
    +Demand Deposits (Foreign BANKS) 15.5
    +Demand Deposits(Foreign INSTITUTIONS) 7.8

    =True Money Supply: 2345.80

  4. OK, I get the same, assuming you’ve used November’s SWEEPS data for Dec-10.

    One thing I do not understand: Why do you not include “Supplementary financing account”?

  5. Well, that’s a tricky one.

    I wrote about this a while back http://www.economicsjunkie.com/update-on-treasurys-supplementary-financing-account/

    Based on how this program works it seems like the Treasury simply helped expand the balance sheet of the Fed by withdrawing money from the economy.

    This money at the fed is not used for anything unless it is extended to banks or used to buy assets … which in turn would show up on checking accounts which we are already counting.

    I don’t include any of the reserve money at the federal reserve in the true money supply either. In fact, none of the traditional measures even do that. So I see no point doing that, because that money is out of circulation as far as I understand it.

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