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Federal
of

.financial Data

"MAR 12 1987

March

5,

1987

The money multiplier shows how many dollars of the money stock (Ml) are
supported by each dollar of the adjusted monetary base. Over the past year,
the multiplier has risen by 6.4 percent, up sharply from 3.3 percent over the
previous 12 months. The multiplier is sensitive to changes in the public’s holdings
of currency relative to checkable deposits (the k-ratio) and time deposits relative
to checkable deposits (the t-ratio). Reductions in these ratios, other things the
same, increase the multiplier. A fall in the k-ratio increases the proportion of
the monetary base that is held as reserves by depository institutions, permitting
a multiple expansion of their checkable deposit liabilities. A fall in the t-ratio
increases the proportion of reserves that depository institutions can use to support
checkable deposits.
As the table on the back page shows, recent increases in the Ml multiplier
have been associated with sharp reductions in both the kand t-ratios. The more
rapid growth of the multiplier since February 1985 can be attributed to the more
rapid expansion of checkable deposits relative to currency and time deposits
than occurred over the previous 12 months.
—Philip A. Nuetzel
(continued on back page)

RESERVE
llVNKof

views expressed do not necessarily reflect official positions of the Federal Reserve System.

http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

2

ADJUSTED MONETARY BASE
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS
264 ------------- ,---------- 1------

BILLIONS OF DOLLARS
------------------------------- 264

BILLIONS
255.0
256.6
257.9
259.9
259.4
259.3

IJ 1 I I I I
4 18

JAN

FEB

MAR

APR

MAY

JUN

2 16 SO 13 27 To 24

JUL

AUG

SEP

8 22

OCT

5 19

NOV

3 17 31

DEC

14 29 11

JAN

25 I I

FEB

MAR

1986

LATEST PLOTTED RESERVE MAINTENANCE PERIOD ENDINGt FEBRUARY 25, 1987

^Jsi?igAu>si?g¥EBsi,iBMEFgarffifi

ba^ce

iuF

RECENT DATA ARE PRELIMINARY.

ADJUSTED MONETARY BASE
COMPOUWED ANNUAL RATES OF CHANGE.
AVERAGE OF TWO MAINTENANCE PERIODS ENDINGs
2/26/86

5/21/86

7/30/86

8/27/86

19/24/66

10/22/86 11/19/86 12/31/86

TO THE AVERAGE OF
TWO MAINTENANCE
PERIODS ENDING»
7/30/86
8/27/86
9/24/86
10/22/86
11/19/86
12/31/86
1/28/87
2/2S/87

9.3
9.1
9.0
8.8
9.4
9.6
10.2
9.6


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

8.4
8.5
8.2
9.1
9.5
10.3
9.5

8.2
7.8
9.4
9.9
10.9
9.8

7.9
10.0
10.4
1 1 .6
10. 1

10.6
10.9
12.2
10.4

12.4
13.7
11.1

13.4
10.2

9.5

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

25

MONEY STOCK (Ml )

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
760

BILLIONS
_

JAN.

730.6
731 .8
736.9
734.6
736.6
738.5

— FEB

660

0 20
JAN

3 17
FEB

3

17 31 APR 28 MAY 20
14
12

0 23

7 21
JUL

1

AUG

LATEST DATA PLOTTED WEEK ENDING: FEBRUARY 23,

13 20 OCT 27 NOV 24
13
10

8 22

5 10
JAN

2 16
FEB

2

16 30

1987

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.
Ml IS THE SUM OF CURRENCY HELD BY THE NONBANK PUBLIC, DEMAND DEPOSITS, OTHER CHECKABLE
DEPOSITS AND TRAVELERS CHECKS.

MONEY STOCK (Ml )
COMPOUNDED ANNUAL RATES OF CHANGE,
2/24/86

5/26/86

7/21/86

8/25/86

17.6
17.9
17.2
16.8
16.8
18.5
18. 1
16.7

17.3
16. 1
15.6
15.9
18.4
17.9
16. 1

16.3
15.4
15.8
19.3
18.4
16. 1

13.0
14.5
19.3
18.2
15.5

AVERAGE OF FOUR WEEKS ENDING:

9/22/86 10/20/86 11/24/86

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
7/21/86
8/25/86
9/22/86
10/20/86
11Z24/86
12/22/86
1/26/87
2/23/87


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

15.4
21.5
19.5
16.0

25.2
21.3
16.6

23.8
16.4

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

3

!

4

MONEY MULTIPLIERS
CURRENCY COMPONENT OF MONEY STOCK*/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

RATIO

2.8H
Ml MULT I PL

13 27 10 24 10 24

JAN

7 21

5 19

APR

FEB

2 IS 90 M 28 11 23

MAY

JUL

8 22

6 20

3 17

OCT

AUG

NOV

I

15 20 12 26

JAN

9 23

9 23

FEB

LATEST DATA PLOTTED TWO WEEKS ENDING* FEBRUARY 23. 1987
ILL IONS OF DOLLARS

BILLIONS OF DOLLARS
192 ---------- ,---------- 1--------

986

_ MAY

!6.
!4,

10.0

1986
1986

CURRENCY

19fil
JAN.

BILLIONS

19

I I I I I I 1 L1 J ,1 J..1.U.1
8 20

3 17

JAN

FEB

3 17 31

14 28 12 2fl

APR

9 23

7 21

4 18

1

13 29 13 27

OCT

MAY

LATEST DATA PLOTTED WEEK ENDING* FEBRUARY 23.

10 24

NOV

9 22

5 19

2 18

JAN

FEB
1987

2 18 30

1987

1/ RATIO OF MONEY STOCK (Ml ) TO ADJUSTED MONETARY BASE
2/ CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.6 RELEASE.


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

TOTAL CHECKABLE DEPOSITS
AVERAGES OF DAILY FIGURES

SEASONALLY ADJUS ItU

BILLIONS OF DOLLARS
575 ---------- 1---------- 1--------

BILLIONS OF DOLLARS
------ ------------------------ 575

BILLIONS
_

JAN.

19

— FEB.

538.2
538.8
543.7
541 .2
543.2
544.5

lliliii.
6 20
JAN

3 17
FEB

3 17 31 APR 28 MAY 26 JUN
14
12
0 23

1

7 21

19

» OCT 27 NOV 24
19
10

I 1 I 1J
8 22

5 10
JAN

2 10
FEB

2 16

LATEST DATA PLOTTED WEEK ENDINGt FEBRUARY 23, 1987
TOTAL CHECKABLE DEPOSITS IS THE SUM OF DEMAND DEPOSITS AND OTHER CHECKABLE DEPOSITS AT ALL
DEPOSITORY INSTITUTIONS.

TOTAL CHECKABLE DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE,
2/24/86

5/26/86

7/21/86

8/25/86

21.9
22. 1
21.2
20.5
20.5
22.8
22.0
20.0

21.1
19.6
18.9
19.2
22.7
21.6
18.9

19.4
18.3
18.8
23.8
22. 1
18.7

15.3
17.2
24.0
21.8
17.8

AVERAGE OF FOUR WEEKS ENDING.

9/22/86 10/20/86 11/24/86 12/22/86

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
7/21/86
8/25/86
9/22/86
10/20/86
11Z24/86
12/22/86
1/26/87
2/23/87


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

18.3
26.9
23.4
18.4

32.2
25.7
19.0

28.8
18.4

7.1

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

5

6

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES
PERCENT

—i 11.0

LOAN

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

Z 16 30 15 27

OC

NOV

DEC

1986
LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE

1987

WEEK ENDING, MARCH 6,

FEB

13 27

MAR

1987.

90 DAY
CD'S

30-DAY
COMMERC1AL
PAPER

90-DAY
BAMCERS*
ACCEPTANCES

CORPORATE
Aaa BONDS

CORPORATE
Baa BONDS

MUNICIPAL
BONDS set

6.22
5.90
5.85
5.82
5.88
5.97
6. 13
6.21
6.11
6. 10

7.31
6.01
5.90
5.87
5.94
6.01
6.20
6.20
6.08
6. 13

6. 10
5.74
5.73
5.70
5.83
5.88
8.07
6.07
6.03
5.98

8.49
8.40
8.33
8.31
8.37
8.38
8.39
8.40
8.36
8.34

9.97
9.82
9.70
9.65
9.68
9.65
9.66
9.67
9.64
9.63

6.85
6.70
6.65
6.54
6.56
6.57
6.67
6.62
6.59
N.A.

JAN.

2
9
16
23
30
FEB.
6
13
20
27
MAR.
6 *
13
20
27

N^AVERAGES^Op7RATES AVAILABLE THE B0ARD 0F GOVERNORS- H. 15 RELEASE.
**

BOND BUYER'S AVERAGE INDEX OF 20 MUNICIPAL BONDS, THURSDAY DATA

N.A. - NOT AVAILABLE


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BAMC OF ST. LOUIS

SELECTED

INTEREST RATES

AVERAGES OF DAILY RATES

PERCENT

PERCENT

11.0 r—

—

TREASURY SECURITIES

DISCOUNT RATE

3 17 31

JAN

14 28 14 28 11

FEB

MAR

APR

25

9 23

MAY

B 20

4

18

JUN
JUL
1986

1

15 29 12 28 10 24

AUO

SEP

OCT

7 21

5 19

NOV

DEC

2

18 30 13 27

JAN

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK END INGt MARCH 6,

1987
JAN.

2
9
16
23
30
FEB.
6
13
20
27
MAR.
6 K
13
20
27

FEB
IQ87

13 27

MAR

1987.

FEDERAL
FUNDS **

3-MONTH
TREASURY
BILL

6-MONTH
TREASURY
BILL 4aeK

1-YEAR
TREASURY
BILL

SECURITIES

LONG-TERM
TREASURY
SECUR1T1ES

9.20
7.62
6.01
6.01
6. 13
6.22
6. 1 4
6.21
5.95
6.06

5.65
5.46
5.35
5.35
5.51
5.62
5.75
5.55
5.45
5.51

5.68
5.55
5.43
5.27
5.43
5.59
5.69
5.70
5.41
5.51

5.64
5.49
5.45
5.38
5.50
5.59
5.71
5.64
5.57
5.59

6.79
6.63
6.63
6.58
6.66
6.74
6.68
6.81
6.74
6.69

7.76
7.58
7.59
7.56
7.69
7.70
7.77
7.73
7.63
7.58

trIaIury

N0TEt
.^TA..^r.EA5^ 1 y THE BOARD OF GOVERNORS* H.15 RELEASE EXCLUDING LONG-TERM TREASURY
* AVERAGES^OF TRATES^AVA I LABLE°^P^TED BY ™'S BANK‘
TREASURY BILL YIELDS ARE ON A DISCOUNTBASIS.
Sfill^AUOn O^AVERAGE^fDISCOUNT*) ENDIN® ™° MYS EARLIER THAN DATE SH0WN


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BAN< OF ST. LOUIS

7

11.0

8
COMMERCIAL BANK
SMALL TIME DEPOSITS^
LARGE TIME DEPOSITS*/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
410 ---------- 1---------- 1---------

1951
JAN.

BILLIONS OF DOLLARS
----------------- -------------- 410

B.1LLIQNS

10

— FEB.

363.9
361.5
SMALL TIME DEPOSITS

LATEST DATA PLOTTED WEEK ENDING* FEBRUARY 23,

1987

BILLIONS OF DOLLARS
305

BILLIONS OF DOLLARS
305
1
1
1
1

BILLIONS
_ 1S6ZJAN. 19 296.5
_____ _ 26 295.3
FEB. 2
293.8
16 296.3
23 296.
-

V \

-

LARGE TIME

'N

Jr

)EPOS TS

-

\
v 7" >A / V*\

290
-

290

285

7III
6 20
JAN

111

1 1 1 1

1 1 1

1 1 1

ii i i

1 1 1

3 17 3 17 31 H 28 12 26 0 23 7 21
FEB MAR
APR
MAY
JUN
JUL
1986

1 1 1

1 1 1 1

1 1 1

1 1 1

1 15 20 13 27 10 24
SEP
OCT
NOV

AUG

1 II 1

J

1-11

1111

8 22 5 10 2 16 2 16 30
DEC JAN
FEB
MAR
1987

LATEST DATA PLOTTED WEEK ENDING* FEBRUARY 23, 1987
1/ TIME DEPOSITS ISSUED IN DENOMINATIONS OF LESS THAN 0100,000
2/ TIME DEPOSITS ISSUED IN DENOMINATIONS OF 0100,000 OR MORE


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

COMMERCIAL BANK
TOTAL TIME DEPOSITS
AVtKAGtS OP DAILY FIGURES

SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

825 --------1--------,----- -

---- -------- ---------- 825

BJ.LL I ON?
820.4
820.2
819] 5
820.0
822.9
822.7

S 20

3 17

JAN

FEB

3 17 31

M 28 12 28

APR

0 23

MAY

7 21

JUL
1986

4 18

I

AUG

18 20 13 27 10 24

OCT

8 22

8 10

2 18

JAN

NOV

FEB
1887

2 18 30

LATEST DATA PLOTTED WELK BOINOt FEBRUARY 23, 1987
TOTAL TIME IS THE SUM OF SAVINGS DEPOSITS, SMALL TIME DEPOSITS AND LARGE TIME DEPOSITS.

TOTAL TIME DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING]
2/24/86
5/26/86 7/21/86 8/25/86 9/22/80 10/20/88 11/24/88 12/22/88
TO THE AVERAGE
OF FOUR WEEKS
ENDING*.
7/21/86
8/25/86
9/22/86
10/20/86
11/24/86
12/22/86
1/26/87
2/23/87

-0.9
-0.6
-0.3
-0.5
-0.2
0.3
1 .8
1.8


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

0.0
0.5
0.0
0.4
1.0
2.9
2.8

1.3
0.3
0.8
1.5
4.0
3.7

0.0
0.7
1.7
4.7
4.3

0.2
1.6
5.3
4.7

3.3
7.5
6.3

10.7
8.0

9.3

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

9

10

BORROWINGS FROM FEDERAL RESERVE BANKS
AVERAGES OF DAILY FIGURES

BILLIONS OF DOLLARS
4.0 ------------- 1---------- 1-----lfifiZ.
JAN.
FEB.

28
4

BILLIONS OF DOLLARS
------------------------------- 4.0

MILLIONS
979
448

MAR.
TOTAL BORROWINGS

I I I I
LATEST DATA PLOTTED WEEK ENDINGt MARCH 4,

1987
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

ififll

MILLIONS.

ADJUSTMENT + SEASONAL
BORROWINGS

1

15 29 12 26 12 26

9 23

7 21
MAY

4 18
JUN

2 10 30 13 27 10 24
AUG
SEP

LATEST DATA PLOTTED WEEK ENDINGt MARCH 4,


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

0 22

5 19

3 17 31 14 20 I! 25 11 25
JAN
FEB
MAR

1987

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

COMMERCIAL PAPER OF NONFINANCIAL COMPANIES
NOT SEASONALLY ADJUSTED

billions of dollars

JAN. 21
FEB.

4

billions of dollars

78,241
77,775
75,003

1

18 20 12 26 12 20
FEB
MAR

I I I I
0 23

7 21
MAY

4 18
JUN

2 16 30 13 27 10 24
AUG
SEP

8 22

8 10

3 17 31 14 28 II 28 11 25
JAN
FEB
MAR

LATEST DATA PLOTTED WEEK ENDINGt FEBRUARY 25, 1987

BUSINESS LOANS u
( COMMERCIAL AND INDUSTRIAL )

WEEKLY REPORTING LARGE COMMERCIAL BANKS 2/
BILLIONS OF DOLLARS

SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

_ COMPOUNDED ANNUAL RATES
OF CHANGE. AVERAGE OF
r the four Weeks ending
” FEBRUARY 18. 1987 FROM
- THE FOUR WE&KS ENDING: '
-

DEC.
NOV.
OCT.
SEP.
AUG.
MAY
FEB.

17,
19,
15,
17,
20,
21
19,

1986
1986
1986
1986
1986

39.9

1986

MILLIONS
JAN. 14
284,197
285,567
283,740
18 20 12 26 12 26
FEB
MAR

0 23

7 21
MAY

4 18
JUN

2 16 30 IS 27 10 24
AUG
SEP

8 22

8 10

11 111. 1.1 11 1.1 U.LLL

3 17 31 14 28 II 28 II 25
JAN
FEB
MAR

LATEST DATA PLOTTED WEEK ENDINGt FEBRUARY 18, 1987
1/ BUSINESS LOANS INCLUDE BANKERS' ACCEPTANCES AND COMMERCIAL PAPER.
2/ BANKS WITH DOMESTIC ASSETS GREATER THAN 61.4 BILLION


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

11
'it j

Ml Multiplier, k-Ratio and t-Ratio
(seasonally adjusted)
Period

Ml multiplier1

k-ratio2

t-ratio2

2/25/85

2.584

.398

2.633

2/24/86

2.669

.381

2.526

2/23/87

2.841

.344

2.209

1 Averages of two reserve maintenance periods ending dates shown
2 Averages of four weeks ending dates shown


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102