Full text of U.S. Financial Data : October 16, 1986

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J

RESEARCH LIBRARY
•Id.S.

OCT 2

0 1986

Fi nancial

Data

October 16, 1986

The money multiplier, the ratio of the money stock (Ml) to the adjusted
monetary base, has grown at an annual rate of 6.4 percent this year, up sharply
from its 3.7 percent growth last year. Among the key factors influencing the
money multiplier are changes in the distribution of the public’s asset holdings
between currency and checkable deposits (the k—ratio) and between time deposits
and 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 depository institutions hold as reserves, permitting
a multiple expansion of their checkable deposits. 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, the rapid growth in the money multiplier
this year has been associated with sharp reductions in both the k- and t-ratios.
Since January, the public has continuously increased its holdings of checkable
deposits at the expense of both currency and time deposits.
—Courtenay C. Stone
(continued on back page)

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 AOJUSTED BY THIS BANK

BILLIONS OF DOLLARS
252 --------- ,--------- ,--------

BILLIONS OF DOLLARS
----- ----------------------- 252

BILLIONS
_

JUL

— OCT

14 28 II 25 9 23
AUG SEP
OCT
1085

6 20
NOV

4 18
DEC

I 15 20 12 28 12 20 0 29
JAN
FEB MAR
APR

7 21 4 18
MAY JUN
1086

2 18 50 15 27 10 24 8 22
JUL
AUG SEP
OCT

LATEST PLOTTED RESERVE MAINTENANCE PERIOD ENDING: OCTOBER 8, 1006
THE ADJUSTED MONETARY BASE IS THE SUM OF RESI
FINANCIAL INSTITUTIONS AT FEDERAL
----------------------- ------------Y ,N CIRCUI-------- ----------'AULTS OF ALL
INSTITUTIO___
I)_AND AN .
I. THE MAJOR
RCE OF THE ADJUSTED MONETARY l____
ED BY THIS
TED MONETARY BASE IS AVAILABLE FI
"
A DETAILED DESCRIPTION OF THE .
HIS BANK.
RECENT DATA ARE PRELIMINARY.
ADJUSTED MONETARY BASE
COMPOUNDED ANNUAL RATES OF CHANGE,
AVERAGE OF TWO MAINTENANCE PERIODS ENDING:
10/9/65

1/1/86

3/12/66

4/0/86

5/7/86

6/4/86

0.8
8.8
0.6
7.8

6.8
8.5
6.5

7/2/86

8/13/86

TO THE AVERAGE OF
TWO MAINTENANCE
PERIODS ENDING:
3/12/86
4/ 0/06
5/ 7/86
6/ 4/86
7/ 2/86
8/13/86
0/10/86
10/ 8/86

8.0
7.6
7.5
8.2
8.0
7.9
8.3
7.6


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

7.5
7.3
8.4
8.1
7.0
8.5
7.6

6.1
8.6
8.0
7.8
8.6
7.4

10.2
8.8
8.3
0.1
7.7

9.5
6.7

6.2

PREPARED BY FEDERAL RESERVE BAM OF ST. LOUIS

MONEY STOCK ( Ml )
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
1M
SEP.

BILLIONS OF DOLLARS
710

BILLIONS
1

700

693.0

690
693.6
701.3
680
670
660
650
640
630

5 IQ

2 16 SO M a II 28

OCT
1985

NOV

0 23

6 20

3 17

JAN

FEB

3 17 31

14 2Q 12 26

APR

0 23

MAY

7 21

4 16

JUL

AUG

M3 20 IS 27

1986

LATEST DATA PLOTTED WEEK ENDING: OCTOBER 6, 1986
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS- H.6 RELEASE.
M1dIS,THE4WM,OF CURRENCY HELD BY THE NONBANK PUBLIC, DEMAND DEPOSITS. OTHER CHECKABLE
DEPOSITS AND TRAVELERS CHECKS.

MONEY STOCK (Ml )
COMPOUNDED ANNUAL RATES OF CHANGE
10/7/85

AVERAGE OF FOUR WEEKS ENDING:

1/6/86

3/3/86

4/7/86

5/5/86

6/9/86

7/7/86

8/4/86

8.7
9.9
13.S
13.5
14.0
15.3
14.5

14.9
19. 1
17.8
17.7
18.8
17.3

20.9
18.6
18.2
19.5
17.6

20.8
19.6
20.8
18.3

15.2
18.5
15.8

20.8
16.5

16.4

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
3/
4/
5/
6/
7/
8/
9/
10/

3/86
7/86
5/86
8/86
7/86
4/86
8/86
6/86

8.2
9.6
10. 1
12.4
12.5
12.9
14.0
13.5


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

3

4
MONEY MULTIPLIERi/
CURRENCY COMPONENT OF MONEY STOCK 2/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

1986

RATIO

2.777
2.798
Ml MULTIPLIER

7 21
OCT

4 18
NOV

2 IB 90 19 27 10 24 10 24
JAN FEB

7 21
APR

S 10
MAY

2 18 90 14 28 11 25

8 22

0 20

LATEST DATA PLOTTED TWO WEEKS ENDING) OCTOBER 0,
BILLIONS OF DOLLARS
182

BILLIONS OF DOLLARS

180
luiuocn o. iwo rnuM
HE FOUR WEEKS ENDING:

178
176

CURRENCY

174
172
170
1M

BJLL10N&
168
166

I I I I I 1 I 1 I 1 I I i 115 10

2 18 90 14 20 II 25
OCT
NOV
1985

0 29

8 20
JAN

9 17
FEB

9 17 91 14 28 12 28 0 29
APR MAY
1986

7 21
JUL

4 18
AUG

I 15 20 19 27

LATEST DATA PLOTTED WEEK ENDING: OCTOBER 6, 1986
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 ADJUSTED

BILLIONS OF DOLLARS

iSfifi
SEP.

BILLIONS OF DOLLARS
520

aJi.Ll.QNS
1

506.8
509.7
505. I
508.3
506.8
514.4

480

■= 450

■=

5 19

2 16 90 14 28 11 25

OCT

NOV

9 25

6 20

9 17

JAN

FEB

5 17 51

14 28 12 26

9 29

7 21

4 18

JUL

AUG

I 15 29 19 27

LATEST DATA PLOTTED WEEK ENDING: OCTOBER 0, 1986
TOTAL^CHECKABLE^DEPOSITS IS THE SUM OF DEMAND DEPOSITS AND OTHER CHECKABLE DEPOSITS AT ALL

TOTAL CHECKABLE DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
10/7/85

1/6/86

3/3/86

4/7/86

5/5/86

6/9/86

7/7/88

8/4/86

8.9
10.9
15.9
15.9
16.6
18.4
17.3

18.5
24.0
22.2
22.0
23.4
21.4

26.7
23.4
22.9
24.3
21.8

26.1
24.5
25.9
22.6

18.6
22.7
19.3

25.7
20.2

19.9

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
3/
4/
5/
6/
7/
8/
9/
10/

3/06
7/86
5/86
9/86
7/86
4/86
8/86
6/86


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

8.4
10.4
11.3
14.4
14.6
15.2
16.6
16.0

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

5

440

6

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES

PERCENT

PERCENT

12.0

11.0

9.0

5.0

2 16 90 13 27 II 25

• 22

6 20

9 17 91 14 28 14 28 II 25
FEB MAR APR

9 29

6 20
JUN

4 18
JUL

1 15 29 12 28 10 24

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: OCTOBER 17, 1980.

1986
AUG.

1
8
15
22
29
SEP.
5
12
19
26
OCT.
3
10
17 ft
24
31

90 DAY
CD'S

30-DAY
COMMERCIAL
PAPER

90-DAY
BANKERS'
ACCEPTANCES

CORPORATE
AAA BONDS

CORPORATE
Baa BONDS

MUNICIPAL
BONDS m

6.29
6.21
6.03
5.82
5.57
5.49
5.71
5.75
5.79
5.77
5.59
5.66

6.28
6.26
6. 17
5.95
5.64
5.59
5.72
5.78
5.79
5.83
5.67
5.72

6.17
6.08
5.94
5.72
5.46
5.43
5.64
5.66
5.68
5.66
5.45
5.55

8.88
8.85
8.74
8.66
8.62
8.74
8.85
8.95
8.97
8.90
8.86
8.88

10.28
10.29
10.26
10. 12
10.04
10.08
10.21
10.24
10.24
10.21
10.20
10.21

7.54
7.53
7.33
7.06
6.93
7.00
7. 15
7. 14
7.15
7. 19
7.06
N. A.

NOTE: CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.15 RELEASE.
X AVERAGES OF RATES AVAILABLE
bm u RiTi
N.A. - NOT AVAILABLE


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

SELECTED

INTEREST RATES

AVERAGES OF DAILY RATES

PERCENT

5-Yf
TREASURY SI

PERCENT
—1 11.0

I TIES

DISCOUNT RATE

BILL

2 ie 30 15 27 II 25 I 22
AUG
SEP
OCT
NOV
1985

6 20
DEC

3 17 31 14 20 M 20 It 25 0 29 0 20
JAN
FEB MAR
APR
MAY
JUN
1986

4 10
JUL

1 19
AUG

12 20 10 24
SEP
OCT

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING*. OCTOBER 17, 1B86.

1986
AUG.

1
6
15
22
29
SEP.
5
12
19
26
OCT.
3
10
17 X
24
31

FEDERAL
FUNDS ME

3-MONTH
TREASURY
BILL

6-MONTH
TREASURY
BILLlOBi

1-YEAR
TREASURY
BILL

5-YEAR
TREASURY
SECURITIES

LONG-TERM
TREASURY
SECURITIES

6.32
6.36
6.31
6.38
5.87
5.83
5.82
5.88
5.81
6.08
5.75
5.83

5.83
5.71
5.60
5.48
5.27
5.21
5.20
5. 18
5.24
5. 19
5.05
5. 16

5.89
5.73
5.60
5.65
5.35
5.17
5.35
5.34
5.39
5.37
5.13
5.22

5.91
5.81
5.67
5.52
5.36
5.35
5.46
5.48
5.47
5.47
5.27
5.38

7. 10
7.06
6.87
6.70
6.55
6.63
6.96
7.01
6.99
6.93
6.72
6.82

8.09
8.0j
7.73
7.61
7.61
7.80
8. 11
8.24
8.20
8.05
7.99
8.17

NOTE* CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.15 RELEASE EXCLUDING LONG-TERM TREASURY
« AVERAGES ^ ^IaTEjTaVA ILABLE °MPUTED
™,S BANK* TREASURY BILL YIELDS ARE ONA DISCOUNTBASIS.


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

THAN DATE

™°DAYS EARLIE"

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

7

8
COMMERCIAL BANK
SMALL TIME DEPOSITS v
LARGE TIME DEPOS ITS 2/
BILLIONS OF DOLLARS
1986

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
415

BILLIONS
374.7
374.2

OCT.

6

371.1
370.4

SMALL TIME DEPOSITS

395

385

LATEST DATA PLOTTED WEEK ENDING: OCTOBER 8, 1986
BILLIONS OF DOLLARS

iSfifi

BILLIONS OF DOLLARS

BILL1 QMS
281.1
281.6
6__ 278.3
LARGE TIME DEPOSITS

5 19

2 IS 30 14 29 11 25
OCT
NOV

9 29

6 20
JAN

9 17
FEB

9 17 91 14 29 12 26
APR MAY

9 23

7 21
JUL

4 18
AUG

I 15 29 13 27

LATEST DATA PLOTTED WEEK ENDING: OCTOBER 6, 1086
1/ TIME DEPOSITS ISSUED IN DENOMINATIONS OF LESS THAN 8100,000
2/ TIME DEPOSITS ISSUED IN DENOMINATIONS OF 8100,000 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
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
810 --------- 1------------,-----

BILLIONS OF DOLLARS

793.2
792.4

9 IB

AUG

2 H 30 14 a II »

SEP

OCT
1985

NOV

I a

DEC

O 20

9 IT

JAN

FEB

9 IT 31

MAR

14 29 12 29

APR

MAY

a 23

JUN

T 21

JUL

AUG

SEP

OCT

LATEST DATA PLOTTED WEEK ENDING] OCTOBER 8, 1088
TOTAL TIME IS Tit SUM OF SAVINGS DEPOSITS, SMALL Tilt DEPOSITS AND LARGE Tilt DEPOSITS.

TOTAL TIME DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDINGi
10/7/85
1/6/86
3/3/86
4/7/86
5/5/86
6/0/86
7/7/86
8/4/86
Sf° ffrmt
ENDING*.
3/
4/
5/
6/
7/
8/
0/
10/

3/ae
7/88
5/88
0/86
7/86
4/86
8/86
6/86

8.3
6. 1
5.0
2.9
2.6
2.2
2.3
2.0


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

6.2
4.1
1.0
0.9
0.6
0.0

o.e

-2.3
-4.8
-3.6
-3.2
-2.2
-2.1

-6.0
-4.1
-3.5
-2.1
-2.1

-4.9
-3.8
-2.1
-2.0

-0.5
0.7
0.1

0.8
0.0

0.7

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

10

BORROWINGS FROM FEDERAL RESERVE BANKS
BILLIONS OF DOLLARS

AVERAGES OF DAILY FIGURES

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

10

1251

24

li

6.0

TOTAL BORROWINGS

LATEST DATA PLOTTED WEEK ENDING* OCTOBER 15, 1908
BILLIONS OF DOLLARS
2.5

BILLIONS OF DOLLARS

2.0

ADJUSTMENT ♦ SEASONAL
BORROWINGS

1.0

7 21
AUG

4 18
SEP

25
2 18 90 19 27
NOV DEC

9

5 19

5 19

2 16 90 14 28 11 25

9 25

6 20
AUG

5 17
SEP

I 15 29

LATEST DATA PLOTTED WEEK ENDING* OCTOBER 15, 1006
1/ 83.707 FOR 11/27/85


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

COMMERCIAL PAPER OF NONFINANCIAL COMPANIES
NOT SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

MILLIONS
SEP.

3
66,444

— OCT,

7 21
AUG

85,480
87,538

4 18
SEP

2 18 SO IS 27 II
NOV DEC

8 22

5 18

5 18

2 16 SO 14 28 II 25
MAY JUN

9 29

6 20
AUG

S 17
SEP

I 15 28

LATEST DATA PLOTTED WEEK ENDING*. OCTOBER 8, 1986

BUSINESS LOANS u

(COMMERCIAL AND

INDUSTRIAL)

WEEKLY REPORT ING LARGE COMMERCIAL BANKS 2/
BILLIONS OF DOLLARS
262 --------- .--------- ,------------1--------- r-----

SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

COMPOUNDED ANNUAL RATES
OF CHANGE. AVERAGE OF

- THE FOUR WEEKS ENDING

OCTOBER 1.1086 FROM
THE FOUR WEEKS ENDING:
260

258

— JUL. 30, 1986
2.8
JUL.
2, \9m
-0.4
JUN.
4, 1986
0.0
APR. 30, 1986 -0.4
“ APR.
2, 1986
-0.3
JAN.
1, 1986
0.9
OCT.
2, 1985
1.2
--------- ---------------------- ----------------

AUG. 27
257,976
259,613
7 21
AUG

4 16
SEP

2 16 SO IS 27 II 25
NOV DEC

6 22

5 18
FEB

5 18
MAR

2 16 SO 14 26 II 25
MAY
JUN

111 II 1 1 1 I I I I
8 2S

6 20
AUG

3 17
SEP

I 15 28

LATEST DATA PLOTTED WEEK ENDING: OCTOBER I, 1986
1/ BUSINESS LOANS INCLUDE BAKERS' 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

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

Ml multiplier1

k-ratio2

t-ratio2

1/13/86
4/7/86
7/14/86
10/6/86

2.670
2.677
2.733
2.797

.379
.378
.363
.354

2.502
2.482
2.362
2.285

averages of two reserve maintenance periods ending dates shown
'averages of four weeks ending dates shown


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Federal Reserve Bank of St. Louis