Full text of U.S. Financial Data : Week Ending: December 22, 1971

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Week ending: December 22, 1971

library

05 ASf79
The money stock has shown no growth over the past four
months, in contrast to a 7.5 percent annual rate in the previous
eighteen months (page 5). The demand deposit component of money
has declined at a 1.2 percent rate in the past four months (page
4), while the currency component has risen at a 3.6 percent annual
rate.
The monetary base has increased at a 3.2 percent annual
rate in the past four months, compared with a 7.7 percent rate in
the previous eighteen months (page 2). Moderation in the growth
of Federal Reserve credit, the largest source component of the
base, has been the primary cause of the slower growth of the base.
Federal Reserve credit has increased at a 6.8 percent rate in the
past four months, after growing at a 9.4 percent rate in the pre­
vious eighteen months (page 3).
Beginning this week the monetary multiplier is included
in this release on page 2. This multiplier (m) presents the re­
lationship of the monetary base (B) to the money stock (M) such
that M ■ m * B. The multiplier has been fairly stable, although
fluctuations do occur because of changes in several factors.
These factors include the ratios of time deposits to demand de­
posits (t), currency to demand deposits (k), U. S. Government
deposits to demand deposits (g), and bank reserves to total
deposits (r). In the past, movements in the t-ratio and the
r-ratio have tended to offset each other, and fluctuations of
the g-ratio are usually reversed within a brief period. During
the past four months, the multiplier has declined leading to a
slower growth rate of money than the base. The decline reflects
primarily an increase in the t-ratio, which might have been anti­
cipated in view of the greater decrease in most money market
interest rates than in rates paid on savings deposits at commer­
cial banks. The most prominant factor leading to the slower
money growth in recent months has been the deceleration in the
growth of the base.
For a more detailed discussion of the base and multi­
plier, see "Elements of Money Stock Determination" in the October
1969 Review of this Bank, available as Reprint No. 46.


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

Prepared by Federal Reserve Bank of St. Louis
Released: December 24, 1971

MONETARY BASE v
MULTIPLIERS

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
92

_

COMPOUNDED ANNUAL RATES
OF CHANGE. AVERAGE OF
THE FOUR WEEKS ENDING
— DECEMBER 22, 1971 FROMTHE FOUR WEEKS ENDING!
-

OCT. 20,
SEP. 22,
AUG. 25,
—JUL. 21,
JUN. 23,
_
MAY
19,
APR. 21,

1971
1971
1971
1971
1971
197!
197!

2.6
1.4
3.2
3.5
4.5
4.8
5.5

90
MONETARY BASE
88

“

86

84
1971

MILLIONS

82

LATEST DATA PLOTTED WEEK ENDING: DECEMBER 22, 1971
RATIO
2.9

RATIO

2.8

MULT I PL IER
2.7

2.6

2.5
RATIO

2.4

7 21

4 18

OCT

NOV

2

16 30 13 27

JAN

10 24 10 24

FEB

7 21

5 19

APR

MAY

2

16 30 14 28 11

25

8 22

6 20

3 17

OCT

NOV

1

15 29

LATEST DATA PLOTTED WEEK ENDING: DECEMBER 15, 1971
1/ USES OF MONETARY BASE ARE MEMBER BANK RESERVES AND CURRENCY HELD BY THE PUBLIC AND NONMEMBER
BANKS, ADJUSTED FOR RESERVE REQUIREMENT CHANGES AND SHIFTS IN DEPOSITS. FOR A DESCRIPTION
OP THE BASE SEE THE AUGUST 1968 "REVIEW OF THIS BANK.
2/ RATIO OF MONEY STOCK CM!) / MONETARY BASE.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

RESERVESm

ALL MEMBER BANKS

3

IN THE NATION

FEDERAL RESERVE CREDIT 2/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS

of dollars

32.5
- COMPOUNDED annual rates
I OF CHANGE. AVERAGE OF
__ THE FOUR WEEKS ENDING.

-------

)g7t FRQM

THF FOUR V IEEKS FNOINGt

31.5

1971
1971
1971
1971
1971
1971
1971

-- SEP

— APR

0.0
-2.5
2.9
5.4
3.9
4.4
5.9

RESERVES
_

-

30.5

NOV.

17

29.5

_

COMPOUNDED ANNUAL RATES
OF CHANGE, AVERAGE OF
THE FOUR WEEKS ENOING
-- DECEMBER 22, 1971 FROMTHE FOUR WEFKS ENDING*
-

OCT.
SEP.
AUG.
-- JUL.
JUN.
_ MAY
APR.

20,
22,
25,
21,
23,
19,
21,

1971
1971
1971
1971
'971
197!
1971

FEDERAL RESERVE CREDIT

0.4
1.4
6.8
5.89.4
8.3
9.0

JLaiL
NOV.

7 2!

4 18

2 16 M 13 27 10 24 10 24

JAN

FEB

7 2!

5 19

APR

MAY

!970

2

16 SO 14 28 11

25

8 22

17
24
i
8

MILLIONS
7
7
76
75

6 20

3 17

OCT

NOV

1

15 29

!971

LATEST DATA PLOTTED WEEK ENDING: DECEMBER 22, 1971
1/ CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.9 RELEASE.
2/ DEFINED TO INCLUDE HOLDINGS OF SECURITIES, LOANS, FLOAT AND "OTHER" ASSETS. ADJUSTED FOR
RESERVE REQUIREMENT CHANGES AND CHANGES IN REQUIREMENTS DUE TO SHIFTS IN DEPOSITS AMONG
CLASSES OF BANKS.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

DEMAND DEPOSIT COMPONENT OF MONEY STOCK
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

billions of dollars

billions of dollars

BILLIONS.
175.3
175.5
! 75.5
75.3

I I I I
•4 18

OCT

2

16 30 13 27

NOV
1970

JAN

10 24 10 24

5 19

2

16 30 14 28 11

FEB

JUL
1971

25

8 22

AUG

6 20

3 17

OCT

NOV

1

13 29

LATEST DATA PLOTTED WEEK ENDING. DECEMBER 15, 1971
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.

COMPOUNDED ANNUAL RATES OF CHANGE,

AVERAGE OF FOUR WEEKS ENDING.

12/16/70

4/14/71

5/12/71

6/16/71

7/14/71

8/18/71

9.5
10.3
10.2
9. 7
8.4
7.3
6.5
6.0

13.2
12.0
10.7
8. 1
6.3
5.3
4.7

11.6
10. 1
7. 1
5.2
4.2
3.7

8.2
4.7
2.8
2.2
2.0

2.7
0.9
0.7
0.7

-2.9
-1.8
-1.2

9/15/71 10/13/71

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
5/12/71
6/16/71
7/14/71
8/18/71
9/15/71
10/13/71
11/17/7!
12/15/71


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

-1.3
-0.7

0.3

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

4

MONEY STOCK

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
235

billions

227. 1
227.5
227.7
227.6
228.5

~~ DEC

230

225

220

215

210

210

7 21

OCT

2

NOV

16 30 13 27 10 24 10 24
JAN
FEB

7 21

5 19

LATEST DATA PLOTTED WEEK ENOING: DECEMBER 15,
CURRENT DATA APPEAR

IN THE BOARD OF GOVERNORS'

2

16 30

14 28 1!

6 20

3 17

1

IS 29

1971
H.6 RELEASE.

COMPOUNDED ANNUAL RATES OF CHANGE , AVERAGE OF FOUR WEEKS ENDING:
12/16/70

4/14/71

5/12/71

6/16/71

7/14/71

8/18/71

9.6
10. 1
10. 1
9.6
8.5
7.5
6.8
6.3

12. 1
11.3
10. 1
8.0
6.4
5.5
5.0

11.1
9.7
7.2
5.5
4.6
4.2

8.2
5.3
3.6
3.0
2.7

3.4
1.8
1.5
1.5

-1.4
-0.5
-0.1

9/15/71 10/13/71

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
5/12/71
6/16/71
7/M/71
8/18/71
9/15/71
10/13/71
11/17/71
12/15/71


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

-0.3
0.2

1.0

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

6

TIME DEPOSITS

All
commercial banks
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
280

5 270

260
TOTAL TIME DEPOSITS
250

- 240

5 230

NET TIME DEPOSITS *

—

220

210

-

7 21

4 18

OCT

NOV
1970

2

16 30

13 27

JAN

10 24 10 24

7 21

5 19

2

16 30 14 28 11

25

8 22

FEB

6 20

3

OCT

NOV

17

1

15 29

1971

LATEST DATA PLOTTED WEEK ENDINGi DECEMBER 15, 1971
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.
* NET TIME DEPOSITS ARE DEFINED AS: SAVINGS DEPOSITS, TIME DEPOSITS OPEN ACCOUNT PLUS TIME
CERTIFICATES OF DEPOSIT OTHER THAN NEGOTIABLE TIME CERTIFICATES OF DEPOSIT ISSUED IN
DENOMINATIONS OF *100,000 OR MORE BY LARGE WEEKLY REPORTING COMMERCIAL BANKS.

NET TIME DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS FNDING:
12/16/70

4/14/71

5/12/71

6/16/71

7/14/71

8/18/71

25. 1
23. 1
21.1
18.2
16.9
16.3
! 6. 1
16.2

13.3
12.0
9.2
8.6
8.9
9.8
10.6

12.3
8.7
8.0
8.5
9.6
10.5

5.3
5.5
6.7
8.4
9. 7

3.9
6.0
8.3
9.8

8.3
10.7
12.1

9/15/71 10/13/71

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
5/12/71
6/16/71
7/14/71
8/18/71
9/15/71
10/13/7!
11/17/7!
12/15/71


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

12.8
14.1

15.5

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

200

€

7
MONEY STOCK PLUS TIME DEPOSITS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

MONEY STOCK PLU5 TOTAL TIME DEPOSITS

MONEY STOCK PLUS NET TIME DEPOSITS**

4 1#

2 16 30 13 27 10 24 10 24

7 21

5 19

2 16 30 14 28 11

1970

25

8 22

6 20

3 17

OCT

NOV

1

15 29

1971

LATEST DATA PLOTTED WEEK END I NOi DECEMBER 15, 1971
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.
*« M2 is DEFINED ASt CURRENCY, DEMAND DEPOSITS PLUS NET TIME DEPOSITS (SEE PAGE 6).

MONEY STOCK PLUS NET TIME DEPOSITS ( M2 )
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDINGt
12/16/70

4/14/71

5/12/71

6/16/71

7/14/71

8/18/71

17.0
'6.3
15.4
13.8
'2.5
11.8
1! .3
11.1

12.9
11.8
9.8
8.4
7.7
7.7
7.8

11.7
9.2
7.6
7.0
7.2
7.3

6.7
5.4
5. 1
5.7
6. 1

3.6
3.9
4.9
5.6

3.3
5.0
5.8

9/15/71 10/13/71

TO THE AVERAGE
OF FOUR WEEKS
END 1NGt
5/12/71
6/16/71
7/14/71
8/18/71
9/15/71
’0/13/71
11/17/71
12/15/71


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

6.3
6.9

8.1

PREPARED BY FEDERAL RESERVE BANK OF ST. i_OU!S

CERTIFICATES OF DEPOSIT
LARGE COMMERCIAL BANKS
WEDNESDAY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

7 21

4 18

OCT

NOV

2

16 30 13 27 10 24 10 24

JAN

FEB

7 21

5 19

APR

MAY

2 18 30 14 28 It

BILLIONS

23

8 22

6 20

of dollars

3 17

!

15 29

LATEST DATA PLOTTED WEEK END I NOi DECEMBER 15, 1971
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ h.B RELEASE.
NEGOTIABLE TIME CERTIFICATES OF DEPOSIT ISSUED IN DENOMINATIONS OF 8100,000 OR MORE BY LARGE
WEEKLY REPORTING COMMERCIAL BANKS.


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

MONEY ANO TIME DEPOSIT DATA

1971
OCT.

6
13
20
27
NOV.
3
10
17
24
DEC.
1
8
15
22
29

CERTIFICATES
OF DEPOSIT

BILLIONS
NET TIME
DEPOSITS*

M2 m

32.7
32.9
32.9
32.7
32. 1
31.8
32. 1
32.3
32.6
33.2
33.0

229.6
229.8
230.7
231.2
231.5
232.2
233. 1
234.0
234.5
234.7
235.9

456.9
457.5
458.2
459.6
459.4
459.4
460.6
461.7
462. 1
463.2
463.7

W SEE FOOTNOTE PAGE 8.
HK SEE FOOTNOTE PAGE 7.
PREPARED BY FEDERAL RESERVE BANK OF ST

LOUIS

MEMBER BANK DEPOSITS
SUBJECT TO RESERVE REQUIREMENTS
(CREDIT PROXY )
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
365

355

CREDIT PROXY ADJUSTED 1/
345

335

CREDIT PROXY

325

315

-

7 21

4 18

OCT

NOV
1970

2 16 30 13 27 10 24 10 24
JAN
FEB

7 21

5 19

APR

MAY

LATEST DATA PLOTTED WEEK ENDINGt DECEMBER 15,
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’
17

2 16 30 14 28 11

25

8 22

NOV.
DEC.

10
17
24
1
8
15


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

B.1LUPNS
CRED1T
PROXY

CRED1T
PROXY
ADJUSTED

352.3
352.9
352.9
354.6
356.0
357.2

357.3
358.3
358. 7
360.0
360.7
361.0

3 17

1

15 29

1971
H.9 RELEASE.

C^A^PS?^'NKIV<ri8u^RC'AL PAPER*

13LL

6 20

BORROWINGS OF

COMPOUNDED ANNUAL RATES OF CHANGE,
AVERAGE OF THE FOUR WEEKS ENDING
DECEMBER 15, 1971 FROM THE FOUR
WEEKS ENDINfc,
CRED1T
CRED1T
PROXY ADJUSTED
OCT.
SEP.
AUG.
JUL.
JUN.
MAY
APR.

13.
15,
18,
M,
16,
12.
M,

1971
1971
1971
1971
1971
1971
1971

11.1
6.0
9.3
9.5
8.2
9.0
9. 1

11.8
7.3
10. 1
9.8
8.5
9.0
8.4

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

305

YIELDS ON SELECTED SECURITIES
AVERAGES OF DA'l/ RAtFS FNDED FRIDAY

percent

CORPORATE AAA BONDS

MUN'C
BONDS**
PRIME COMMERCIAL
LOAN RATE

DISCOUNT RATE
THREE-MONTH TREASURY
BILL MARKET YIELD

2 16 30 13 27 11

25

8 22

5 19

5 19

2 10 30 H 20 11

25

9 23

6 20

3 17

1

15 20 12 20 10 24

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE C0R THE WEEK ENDING. DECENWER 24,

1971
OCT.

I
8
15
22
29
NOV.
5
12
19
26
DEC.
3
10
17
24 *
31

1971

CORPORATE
AM BONOS

3-MONTH
TREASURY
BILLS

3-5 YEAR
GOVERNMENT
SECURITIES

LONG-TERM
GOVERNMENT
SECURITIES

MUNICIPAL
BONDS K*

7.46
7.44
7.42
7.37
7.3’
7.25
7.24
7.27
7.28
7.28
7.27
7.24
7.24

4.65
4.51
4.45
-4. 47
4.36
4.18
4.18
4. 15
4.33
4.28
4. 1 1
4.04
4.09

5.91
5.84
5.68
5.62
5.53
5.41
5.47
5.47
5.63
5.52
5. 48
5.45
5.44

5.52
5.47
5.44
5.47
5.43
5.33
5.37
5.46
5.56
5.58
5.59
5.63
5.69

5.24
5. 17
4.99
4.97
5. 11
4.99
5.19
5.25
5.36
5. 44
5.23
5.21
N.A.

*a<fAB0NDGBUYER’SAAVERAGEVnDEx'oF 20 MUNIC'PAL BONDS,

THURSDAY 0*TA.

N.A. - NOT AVAILABLF.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

jr»

SELECTED SHORT-TERM INTEREST RATES
AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT

PERCENT
-- 8.5

COMMERCIAL PAPER
4-TO-6 MONTH

FEDERAL FUNDS RATE

2 16 30 1} 21 It 23

8 22

5 19

5 19

FEB

MAR

2 16 30 14 28 11 28

9 23

6 20

5 17

1

IS 29 12 26 10 24

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDINGi DECEMBER 24. 197!


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

1971
OCT.

1
8
15
22
29
NOV.
5
12
19
26
DEC.
3
10
17
24 *
31

PRIME
COMMERC1AL
PAPER
4-6 MONTH

FEDERAL
FUNDS

PRIME.
BANKERS'
ACCEPTANCES

90 DAY
CD'S**

5.75
5, 75
5.63
5. 45
5.25
5.03
4.88
4.93
4.88
4.88
4.88
4.75
4.75

5.35
5,25
5.35
4.98
5,25
5.13
4.83
4.85
5.00
4.33
4.63
3.93
3.80

5.40
5.23
5.03
4.98
4.88
4.78
4. 75
4.75
4.82
4.75
4.58
4.50
4.50

5.62
5.53
5.44
5.29
5.18
4.99
4.9!
4.88
4.89
4.89
4.84
4. 75
4.66

* AVERAGES OF RATES AVAILABLE. FEDERAL FUNDS LAST FIVE DATS AVAILABLE
** DATA ARF SECONDARY MARKET RATES, WEEKLY AVERAGES ENDING WEDNESDAY TWO
DAYS EARLIER. CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.9 RELEASE.
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

BORROWINGS AND EXCESS RESERVES
ALL MEMBER BANKS !N THE NATIONBILLIONS
AVERAGES OF DA'LY FIGURES

BILLIONS OF DOLLARS
1.6

OF DOLLARS

—i-----------

---- ---- --

1.6

EXCESS RESERVES

0.8

-

-

NET FREE RESERVES

1.6

-

7 21

1 18

OCT

NOV
1970

2 16 50 13 27

DEC

JAN

10 24 10 24

FEB

MAR

7 21

5 19

APR

MAY

2 16 50 14 28 11

JUN

JUL
'971

AUG

25

8 22

SEP

8 20

3 17

1

OCT

NOV

DEC

15 29

LATEST DATA PLOTTED WEEK ENDING. DECEMBER 22, 197!


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

MILLIONS
1971
OCT.

6
13
20
27
NOV.
3
’0
17
24
DEC.
1
8
15
22
29

EXCESS
RESERVES
214
49
210
5!
396
10
188
144
558
1 14
'90
12

BORROWINGS
309
449
332
413
216
122
287
538
70!
60
27
144

FREE
RESERVES
-

95
400
122
362
180
112
99
394
143
54
163
132

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

0.8