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Federal Reserve Bank

—of St.

Louis

UrS-Hnancial Data

°CT 2 1 1985

October 17, 1985

The behavior of Ml largely reflects movements in currency
and checkable deposits. Since the introduction of checkable
deposits that explicitly earn interest (OCDs), it is often claimed
that changes in the growth of Ml are largely dominated by this
component.
The table below reports Ml growth for the period since
June 1984. As shown, Ml grew at a very slow rate (0.5 percent)
from June through October 1984 and, since then, has grown very
rapidly (at almost a 13 percent rate). This recent increase in Ml
growth is due not only to accelerated growth in OCDs, but also to
a noticeable surge in demand deposit growth. In fact, during the
period since October 1984, currency plus demand deposits
together have increased at a 9 percent rate, accounting for more
than half of the accelerated growth in Ml.
Growth Rates of Ml and Its Major Components
(compounded annual rates, seasonally adjusted)

Period

Ml

Currency

Demand
deposits

6/84-10/84
10/84-9/85

0.5%
12.7

5.5%
7.5

-5.2%
10.0

Other checkable
deposits
6.2%
22.8
— Gary J. Santoni

THK
FEDERAL
A REMERW:
RANK of
nr ST.IXHIS

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

BILLIONS OF DOLLARS
236

BILLIONS
_

SEP

234

232.3
232

231.3
231.4

232.1
230. 1

230
228
226
224
222
220
218
216
214
212

15 20 12 20 10 24

7 21

5 10

NOV

DEC

2 10 30 13 27 13 27

FEB

MAR

10 24

8 22

5 10

3 17 31

14 28 11

AUG

APR

29

0

SEP

LATEST DATA PLOTTED WEEK ENDING* OCTOBER 16. 1885
THE ADJUSTED MONETARY BASE IS THE SUM OF RESERVE ACCOUNTS OF FINANCIAL INSTITUTIONS AT FEDERAL
RESERVE BANKS. CURRENCY IN CIRCULATION (CURRENCY HELD BY THE PUBLIC AND IN THE VAULTS OF ALL
DEPOSITORY INSTITUTIONS) AND AN ADJUSTMENT FOR RESERVE REQUIREMENT RATIO CHANGES.
THE MAJOR
SOURCE OF THE ADJUSTED MONETARY BASE IS FEDERAL RESERVE CREDIT. DATA ART COMPUTED BY THIS
ARE --------------------AILABLE
BANK. A DETAILED DESCRIPTION OF THE ADJUSTED MONETARY BASE IS AVAILABLE FROM THIS BANK.
RECENT DATA ARE PRELIMINARY.
ADJUSTED MONETARY BASE
COMPOUNDED ANNUAL RATES OF CHANGE
10/17/84

AVERAGE OF FOUR WEEKS ENDING:

1/16/85

3/13/85

4/17/85

5/15/85

6/19/85

7/17/85

8/14/85

7.7
5.4
9.5
8.6
7.9
8.5
7.8

2. 1
9.7
8.3
7.4
8.3
7.4

12.3
9.5
8.0
9.0
7.8

14.9
11.2
11.6
9.6

3.5
6.9
5.5

8.4
6.1

7.3

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
3/13/85
4/17/85
5/15/85
6/19/85
7/17/85
8/14/85
9/18/85
10/16/85

7.7
7.2
6.0
8.5
7.9
7.5
8.0
7.5


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK (Ml )
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
630 rz--------1---------- 1--------

ILL IONS OF DOLLARS
—1------------- -------- =1 630

SEP
►09.7
611.5

1

AUG

SEP

IS 29 12 20 10 24

OCT
1984

NOV

DEC

7 21

4 19

4 19

I

JAN

FEB

MAR

APR

IS 29 13 27 10 24

MAY

JUN
1985

9 22

JUL

5 19

AUG

2

19 30 14 29

SEP

OCT

LATEST DATA PLOTTED WEEK ENDING: OCTOBER 7, 1985
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.6 RELEASE.
DEPOSITS^ANd“TRAVELERS^^CHECKS? BY THE

PUBUC’ DEMAND DEP0SITS' 0THER ««**«

MONEY STOCK ( Ml )
COMPOUNDED ANNUAL RATES OF CHANGE
10/8/84

AVERAGE OF FOUR WEEKS ENDING:

1/7/85

3/4/85

4/8/85

5/6/85

9. 1
8.4
11.0
12.0
11.3
13.1
12.3

5.4
10.5
12. 1
11.1
13.5
12.3

13.8
15.1
13.1
15.6
13.9

19.2
15.3
17.7
15.3

6/10/85

7/8/85

8/5/85

16.3
12.7

15.4

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
3/ 4/85
4/ 8/85
5/ 6/85
6/10/85
7/ 8/85
8/ 5/85
9/ 9/85
10/ 7/85

9.4
8.5
8.2
9.8
10.7
10.3
1 1.7
1 1.2


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

12.2
16.8
13.9

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

3

4
if

MONEY MULTIPLIER^
CURRENCY COMPONENT OF MONEY STOCK 2/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

RATIO

2.8

V in tO M

(A

---------

_

—
RATI

1

oc

RATIO

T.

l

2.7

7
Ml Ml LTIPL IER

/

Z1

/

S'

111 .LLL

1111 _LLL III! -LLL

1 1 1

A
u rJ

/V

\/

-LLL 1111 .LLL _LLL

V

1111

-LLL

1111

j

-LLL

LATEST DATA PLOTTED WEEK ENDING: OCTOBER 7, 1085
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
170

-

COMPOUNDED ANNUAL RATES
OF CHANGE. AVERAGE OF
— THE FOUR WEEKS ENDING
OCTOBER 7. J&85 FROM
ia» 1 uocn r WEEKS ENDING:
THE FOUR , i vw r nun

JUN.

IQ!

JAN.

7

CURRENCY

18.85

BILL IONS
167.5
167.7

I I I I 1 I I I I I I I I 1 II
e 20

3 17

AUG

1

SEP

7 21

4 10

4

JAN

19 20 12 20 10 24

10

FEB

1

19 20 13 27

MAR

10 24

S 22

3 10

2 10 30 14 20

MAY
JUN
IOC

1084
LATEST DATA PLOTTED WEEK ENDING: OCTOBER 7, 1985
1/ RATIO OF MONEY STOCK (Ml > TO ADJUSTED MONETARY BASE

2/ CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.


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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

=

BILLIONS OF DOLLARS
450
445

SEP

436.1
440. 1

440

435.7
440.9

~ OCT

435
430
425
420
415
410
405
400

385
6 20

3 17

AUQ

SEP

1

IS 20 12 20 10 24

7 21

4 10

4 10

JAN

FEB

MAR

I

15 20 13 27 10 24

MAY

0 22

5 10

2 16 30 14 28

JUN

LATEST DATA PLOTTED WEEK ENDING) OCTOBER 7, 1085
JOT^|CHEOCABLf|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:
10/8/84

1/7/85

3/4/85

4/8/85

5/6/85

10.0
9.5
12.5
13.8
12.7
15.1
14.0

5.9
11 .8
13.8
12.4
15.5
14.1

16.0
17.6
14.8
18.2
16.1

22.3
17.2
20.6
17.7

6/10/85

7/8/85

8/5/85

19.0
14.5

18.4

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
3/ 4/85
4/ 8/85
5/ 8/85
6/10/85
7/ 8/85
8/ 5/85
0/ 9/85
10/ 7/85

10.7
9.5
9.2
11.1
12.1
11.6
13.4
12.7


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Federal Reserve Bank of St. Louis

13.5
19.6
16.1

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

5

6

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES

PERCENT
14.0

.PAN RATE

IN ICI PAL
BONDS

90 DAY
CD'S

3 IT 31 14 28 12 26 8 23
AUG
SEP
OCT
NOV
1984

7 21
DEC

4 18
JAN

1 13
FEB

1 13 28 12 26 10 24 7 21
MAR
APR
MAY
JUN
1985

JUL

AUG

SEP

OCT

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: OCTOBER 18, 1985.

1985
AUG.

SEP.

OCT.

2
9
16
23
30
6
13
20
27
4
1 1
18 K
25

90 DAY
CD'S

50-DAY
COMMERC1AL
PAPER

90-DAY
BANKERS'
ACCEPTANCES

7.83
7.83
7.82
7.78
7.79
7.87
8.00
7.99
7.82
7.85
7.89
7.94

7.75
7.75
7.74
7.67
7.71
7.74
7.91
7.90
7.73
7.76
7.80
7.89

7.74
7.73
7.70
7.66
7.68
7.80
7.92
7.90
7.68
7.72
7.82
7.83

CORPORATE
Aaa BONDS
11.21
11.20
11.08
10.95
10.90
10.94
11.13
11.11
11.05
11.07
11.12
11.07

CORPORATE
Baa BONDS
12.58
12.59
12.54
12.44
12.40
12.41
12.52
12.51
12.47
12.46
12.39
12.39

MUNICIPAL
BONDS *K
9.01
9.02
9.12
9. 18
9.09
9.07
9.26
9.35
9.38
9.33
9.25
N. A.

NOTE: CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.15 RELEASE.
m AVERAGES OF RATES AVAILABLE
« BOND BUYER'S AVERAGE INDEX OF 20 MUNICIPAL BONDS, THURSDAY DATA
N.A. - NOT AVAILABLE


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Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

SELECTED

INTEREST RATES

AVERAGES OF DAILY RATES

PERCENT
14.0

5-YEAR
TREASURY SECURITIES

FEDI
FUNDI

DISCOUNT

RATE

3-MONT
TREASURY BILL

4 18

SEP

OCT
1984

DEC

I

JAN

FEB

15

1

15 29 12 28 10 24

7 21
JUN

JUL

SEP

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: OCTOBER 18.

1985
AUG.

2
9
16
23
30
SEP.
6
13
20
27
OCT.
4
1 1
18 *
25

OCT

1985.

FEDERAL
FUNDS HOC

5-MONTH
TREASURY
BILL

6-MONTH
TREASURY
BILL X8HE

1-YEAR
TREASURY
BILL

5-YEAR
TREASURY
SECURITIES

LONG-TERM
TREASURY
SECURITIES

7.64
7.92
7.88
8.06
7.78
7.88
7.80
7.85
7.96
8. 12
7.84
8.03

7.28
7.21
7.13
7.0 T
7.07
7. 14
7.23
7.12
6.89
7.01
7. 17
7.21

7.40
7.52
7.36
7.28
7.21
7.30
7.39
7.32
7.05
7.24
7.32
7.36

7.57
7.58
7.49
7.39
7.42
7.49
7.62
7.55
7.34
7.41
7.49
7.47

10.01
9.98
9.84
9.67
9.66
9.76
9.95
9.85
9.66
9.71
9.82
9.79

10.90
10.85
10.76
10.59
10.57
10.68
10.87
10.80
10.73
10.73
10.81
10.72

NOTE: CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.15 RELEASE EXCLUDING LONG-TERM TREASURY
* AVERAGES^OFTRATES^AVAiLABLE°W*TE° BY THIS BANK‘
TREASURY BllLL YIELDS ARE ON A DISCOUNT BASIS.
SEVEN-DAY AVERAGES FOR WEEK ENDING TWO DAYS EARLIER THAN DATE SHOWN
mm AUCTION AVERAGE (DISCOUNT)


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Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE 8AM< OF ST. LOUIS

7

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

BILLIONS OF DOLLARS
410

BILLIONS OF DOLLARS
410

BILLIONS

SEP.

2
9
16

383.3
382.6
383.0

_
T.

30
7

382.1
362.

400

TTI

o
o

1

_

1985

M il

I

SMALL TIME DEPO UTS

-

390

380

~s

_

111

111

1111

1 1 1 XI 1 1

111

in

111

1111

111

1 1 1 -1 in

111

1111

MX

LATEST DATA PLOTTED WEEK ENDING: OCTOBER 7, 1985
BILLIONS OF DOLLARS
1SB5.
_

SEP.

BILLIONS OF DOLLARS
280

BILLIONS
269.4

LARGE TIME DEPOSITS

273.4

265

15 29 12 26 10 24

AUG

7 21

4 16

15 20 IS 27 10 24

SEP

MAY

• 22

5 IB

2 16 SO 14 26

JUN

LATEST DATA PLOTTED WEEK ENDING: OCTOBER 7, 1985
1/ TIME DEPOSITS ISSUED IN DENOMINATIONS OF LESS THAN 6100,000
2/ TIME DEPOSITS ISSUED IN DENOMINATIONS OF 6100,000 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

BILLIONS of DOLLARS

BILLIONS
776.9
777.8
781 .0
781.5
784.0

e 20
AUG

3 17
SEP

1

13 29 12 20 10 24

7 21
JAN

4 10
FEB

4 10
MAR

1 IS 20 13 27 10 24
APR
MAY
JUN

1984

0 22

3 10

2 10 30 14 28

1085

LATEST DATA PLOTTED WEEK ENDINGt OCTOBER 7,

1085

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:
10/8/84

1/7/85

3/4/85

4/8/85

5/6/85

6/10/85

7/8/85

8/5/85

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
3/ 4/85
4/ 8/85
5/ 6/85
6/10/85
7/ 8/85
8/ 5/85
0/ 0/85
10/ 7/85

0. 1
1.8
3.0
2.5
2.0
1 .3
1.2
1.8


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Federal Reserve Bank of St. Louis

1 .0
3.4
2.5
1.7
0.8
0.7
1.5

10.2
6.3
4.3
2.5
2.1
2.9

4.7
2.4
0.6
0.6
1.8

-1.3
-2.5
-1.7
0.1

-3.8
-2.2
0.2

-2.1
1.1

3.9

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

9

l

10

BORROWINGS FROM FEDERAL RESERVE BANKS
BILLIONS OF DOLLARS
10.0

AVERAGES OF DAILY FIGURES

-------------------------------r—

BILLIONS OF DOLLARS
—i---------- 1------------- 10.0
1985
SEP.

MILLIONS

11
18
25
2

1091
1079
1282
1440

TOTAL BORROWINGS

LATEST DATA PLOTTED WEEK ENDING. OCTOBER 16,

1965

BILLIONS OF DOLLARS
2.0

BILLIONS OF DOLLARS

------ ----- ---

---1----- 1-----SEP.

II

ADJUSTMENT + SEASONAL BORROWINGS

I I I I 1 I I I
1

15 20 12 26 10 24

7 21

5 10

NOV

DEC

2 16 90 19 27 19 27

FEB

LATEST DATA PLOTTED WEEK ENDING. OCTOBER 16,


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

MAR

10 24

APR

• 22

5 10

9 17 91

14 20 II

AUG

25

0 29

SEP

1985

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

2.0

MMDAS,

MMMFS AND SUPER NOWS

(BILLIONS OF DOLLARS, NOT SEASONALLY ADJUSTED )

MMDAb 1/
August

September

October
1/
2/
3/
—

4240.5
239.7
241.8
239.7
239.0
238.8
238.8
238.2
238.3

4316.8
317.8
318.6
319.6
321.3
321.9
320.5
321.0
322.7

12
19
26
2
9
16
23
30
7

Super NOWs 3/

MMMFs 2/

459.0
58.7
58.5
59.1
61.1
60.5
59.2
58.7
61.0

Money market deposit accounts at commercial banks
Total money market mutual fund balances
NOW accounts at all depository institutions, requiring a $1,000 minimum balance
and eligible to earn more than 5.25 percent, effective 1/5/85

BUSINESS LOANS u

(COMMERCIAL AND INDUSTRIAL )
WEEKLY REPORTING LARGE COMMERCIAL BANKS

2/

SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

COMPOUNDED ANNUAL RATES
ur

uwnuc,

«vc.rvwu wr

THE FOUR WEEKS ENDING
uviuocn c, isos rnuM
THE FOUR WEEKS ENDING:
JUL. 31,
JUL. 3,
— JUN. 5,

1985
1985
1985

3.
2,
3,

1985
1985
1984

-0.6

-0.9
- APR
JAN.
_ OCT

MILLIONS

1

5 IB

15 » 12

NOV

DEC

2 10 30 13 27 13 27

FEB

MAR

10 24

8 22

5 IB

APR

3 17 31

14 26 II

AUG

25

B 23

SEP

LATEST DATA PLOTTED WEEK ENDING: OCTOBER 2, 1985
1/ BUSINESS LOANS INCLUDE BANKERS' ACCEPTANCES AND COMMERCIAL PAPER.
2/ BANKS WITH DOMESTIC ASSETS GREATER THAN tl.4 BILLION


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Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

11

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