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Week ending: July 21r 1971

Monetary aggregates have risen at unprecedented rates
in recent months. For instance, the nation's money stock has
expanded at an 11.5 per cent annual rate in the past six months
(page 5), ranking in the highest percentile of all consecutive
six-month periods since World War II. Money plus net time deposits
(called M2) has risen at a 16 per cent rate (page 7), ranking in
the 99th percentile. Growth of aggregates in the last six months
have greatly exceeded those rates of 1967 and 1968, the last
period of rapid monetary expansion (see table below). This
period was one of accelerating inflation and sharply rising
interest rates.
Growth of other monetary aggregates, such as the monetary
base and Federal Reserve credit which are largely under the control
of monetary authorities, has been primarily responsible for the
rapid growth of money. The monetary base has risen at a 9.4 per
cent annual rate in the past six months (page 2), ranking in the
100th percentile. Federal Reserve credit has risen at a 13 per
cent rate in the past six months, which is in the 89th percentile.
In 1969, the base grew only 3 per cent, and the growth of the money
stock slowed to about the same rate. In 1970 growth of the base
accelerated to a 6.2 per cent rate of increase, resulting in a
5.4 per cent increase in the money stock.

Selected Monetary Aggregates
(annual rates of change)

1957
to
1970
Money Stock
Demand Deposits
Money + net
time deposits
Monetary base
F. R. Credit

*


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

12/66
to
12/68

12/68
to
12/69

12/69
to
12/70

4 wks. ending
1/20/71 to
4 wks. ending
7/21/71

3.4
3.1

7.2
7.4

3.1
2.4

5.4
5.1

11.5*
11.9*

5.8
3.7
7.6

9.7
6.3
10.2

2.4
3.0
5.1

8.2
6.2
4.8

15.9*
9.4
13.3

Four weeks ending 1/13/71 to the four weeks ending 7/14/71.

Prepared by Federal Reserve Bank of St. Louis
Released: July 23,1971

MONETARY BASE v
FEDERAL RESERVE CREDIT^
AVERAGES OF DAILY FIGURES

SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
90

_

COMPOUNDED ANNUAL RATES
OF CHANGE, AVERAGE OF
THE FOUR WEEKS ENDING
---- JULY 21. 1971 FROM
THE FOUR WEEKS ENDING.
-MAY
APR.
MAR.
— FEB.
JAN.
_ DEC.
NOV.

19,
21,
24,

1971
1971
1971
1971
1971
1970
1970

24,
20,
23,
18,

88

86
MONETARY BASE

10.3

84

82
971

MILLIONS

80

21

88

76
_

COMPOUNDED ANNUAL RATES
OF CHANGE, AVERAGE OF
THE FOUR WEEKS ENDING
— JULY 21, 1971 FROM
_
THE FOUR WEEKS ENDING.
—

MAY
APR.
MAR.
— FEB.
JAN.
_ DEC.
NOV.

19
21

74

14.8

24
24

72

FEDERAL RESERVE CREDIT

20
23
18

1970
70

68

JLSZl

JUL.

6 20

3 17

1

15 29 12 26

9 23

7 21

4 18

2

16 30

13 27

JAN
1970
LATEST DATA PLOTTED WEEK ENDING. JULY 21,

10 24 10 24

7 21

millions

—

14
21
5 19

2

66

7
7:
16 30 14 26

FEB

1971
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
OF THE BASE SEE THE AUGUST 1968 ’■REVIEW" OF THIS BANK.
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

3

RESERVES
ALL MEMBER BANKS IN THE NATION
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
32.0 ---------------------------

BILLIONS OF DOLLARS

31.5

31.0

29.5

29.0

28.5

28.5

27.5

27.5

< 18

MAY

JON

JUL

AUG

SEP
1970

LATEST DATA PLOTTED WEEK ENDING,

OCT

NOV

JULY 21,

2 16 30 13 27

DEC

JAN

10 24

10 24

FEB

7 21

5 19

APR

MAY

2 16 30 14 28

1971

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.9 RELEASE.
* BREAK IN SERIES DUE TO CHANGES IN REGULATION D EFFECTIVE OCTOBER 1,


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

1971
JUN.
JUL.

BILLIONS
16
23
30
7
M
2!

31.5
31.0
31.3
3! . 1
30.9
30.6

1970.

COMPOUNDED ANNUAL RATES
OF CHANGE. AVERAGE OF
THE FOUR WEEKS ENDING
JULY 21, 1971 FROM
THE FOUR WEEKS ENDING,
MAY
APR.
MAR.
FEB.
JAN.
DEC.
NOV.

19,

21,

24,
24,

1971
1971
1971
1971

20,

1971

4.1
5.4

1970
1970

7.1
8.2

23,
18,

1.8

-

4.0
3.0

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
180

billions

17-3. 1
174.5
174.0

175

175.6

170

165

160

6 20

MAY

3 17

I

JUN

9 23

7 21

4

OCT

15 29 12 26

NOV

18

2

16 30 13 27

JAN

10 24

10 24

7 21

5 19

2

16 30 14 28

FEB

LATEST DATA PLOTTED WEEK ENDINGi JULY 14, 1971
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.

COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
7/15/70

11/11/70 12/16/70

1/13/71

2/17/71

3/17/71

4/14/71

10.6
14.5
8.5
12.9
1 1.9

21.2
10.3
15.5
13.8

6.3
14.5
12.7

5/12/71

10.6
9.4

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
2/16/70
1/13/71
2/17/71
3/17/7!
4/14/71
5/12/71
6/’6/71
7/14/71


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

5.2
4.2
4.3
5.8
7.5
5.9
8. 1
8.0

4.3
4.4
7.4
10.2
7. 1
10.3
9.9

2. 1
6.9
10.7
6.7
10.6
10. 1

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
235

billions

224.2
226.2
225.6
225.3
228.5

230

225

220

215

210

6 20

3 17

1

15 29 12 26

9 23

7 21

4 18

OCT

NOV

LATEST DATA PLOTTED WEEK ENDING. JULY 14,

2 16 30 13 27 10 24

JAN

10 24

7 21

5 19

2 16 30 14 28

FEB

1971

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS'

H.6 RELEASE.

COMPOUNDED ANNUAL RATES OF CHANGE , AVERAGE OF FOUR WEEKS ENDING:
7/15/70

11/11/70 12/16/70

1/13/71

2/17/71

3/17/71

4/14/71

5/12/71

10.4
13.5
8.9
12.2
1 1.5

18.8
10.4
14.2
13.0

7.4
13.5
12.1

10.3
9.5

16.5

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
12/16/70
1/13/71
2/17/71
3/17/71
4/14/7!
5/12/7!
6/16/7!
7/14/7!


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

4.8
4.3
4.5
5.9
7.3
6. 1

7.9
7.8

4.7
5.0
7.5
9.8
7.5
10.0
9.7

3.8

7.7
10.6
7.6
10.5
10.2

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
260

250

240
TOTAL TIME DEPOSITS
230

220

210
NET TIME DEPOSITS*

200

190

6 20

3 17

MAY

1

9 23

7 21

4

OCT

15 29 12 26

JUN

NOV

18

2

16 30 13 27 10 24

JAN

FEB

1970

10 24

7 21

APR
1971

5 19

2 16 30 14 28

MAY

LATEST DATA PLOTTED WEEK ENDINGt JULY 14. 197!
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.
* NET TIME DEPOSITS ARE DEFINED ASi 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 DEPOS1TS
COMPOUNDED ANNUAL RATES OF CHANGE,
7/15/70

11/11/70 12/16/70

AVERAGE OF FOUR WEEKS ENDINGi

1/13/71

2/17/71

3/17/71

4/14/71

5/12/71

32.5
30.3
25.4
23.2
20.7

30.0
23. 1
21.0
18.4

17.7
17.1
14.8

13.6
11.7

12.3

TO THE AVERAGE
OF FOUR WEEKS
ENDINGi
12/16/70
1/13/71
2/17/7!
3/17/71
4/14/71
5/12/7!
6/16/71
7/14/71


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

16.9
17.8
19.8
21.4
21.8
20.7
20.2
19.2

19.3
23.3
25.7
25.7
23.2
22.0
20.3

27. 1
29.4
28.4
24.8
23. 1
20.9

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK PLUS TIME DEPOSITS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
500 r=------- ---------- --------

BILLIONS OF DOLLARS
----- ---------------------= 500

MONEY STOCK PLUS TOTAL TIME DEPOSITS

MONEY STOCK PLUS NET TIME DEPOSITS**'

6 20

3 17

MAY

JUN

I

15 29 12 26

9 23

7 21

4 1#

OCT

NOV

2 16 30 IS 27 10 24 10 24

JAN

7 21

3 10

APR

FEB

MAY

2 16 30 14 20

LATEST DATA PLOTTED WEEK ENDING. JULY 14. 1971
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.6 RELEASE.
** Mi IS DEFINED AS. CURRENCY, DEMAND DEPOSITS PLUS NET TIME DEPOSITS (SEE PAGE 6).

MONEY STOCK PLUS NET TIME DEPOSITS ( M 2 )
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
7/15/70 11/11/70 12/16/70 1/13/71 2/17/71
3/17/71 4/14/71
5/12/71
TO THE AVERAGE
OF FOUR WEEKS
ENDING.
12/16/70
1/13/71
2/17/71
3/17/71
4/14/71
5/12/71
6/16/71
7/14/71


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

10.5
10.6
11.7
13. 1
14. 1
13.0
13.7
13.2

1 1.7
13.7
16. 1
17.4
15.0
15.7
14.8

14.7
17.8
19. 1
15.8
16.5
15.3

20.7
21.5
16.8
17.4
15.9

24.2
16.6
17.5
15.6

12.6
15.2
13.5

11.8
10.6

14.4

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

CERTIFICATES OF DEPOSIT
LARGE COMMERCIAL BANKS
WEDNESDAY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
32 --------- ---------- ----------

0 20

9 17

1

19 29 12 20

9 29

7 21

OCT

4 18

NOV

BILLIONS OF DOLLARS
------- ----------------------I 32

DEC

JAN

FEB

7 21

S IS

APR

2 It 90 It 27 10 24 10 24

MAY

2 It 90 M 21

LATEST DATA PLOTTED WEEK ENDINGt JULY 14, 1971
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.
NEGOTIABLE TIME CERTIFICATES OF DEPOSIT ISSUED IN DENOMINATIONS OF 9100,000 OR MORE BY LARGE
WEEKLY REPORTING COMMERCIAL BANKS.


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

MONEY AND TIME DEPOSIT DATA

1971
MAY

5
12
19
26
JUNE 2
9
16
23
30
JULY 7
14
21
28

CERTIFICATES
OF DEPOSIT

BILLIONS
NET TIME
DEPOS1TS *

27.6
27.6
27.9
28.3
28.2
28.5
28.2
28.9
28.8
29.6
30.2

222.3
223.0
223.3
224. 1
225.1
225.2
225.8
225.8
226.6
226.5
226.6

M2 m
442.9
446.2
448.0
449.5
450.6
449.5
452.0
451.4
451.9
455.0
453.9

X SEE FOOTNOTE PAGE 6.
XX 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

CREDIT PROXY ADJUSTED 1/

CREDIT PROXY

6 20

3 17

1

!5 29 12 26

9 23

7 21

■1 18

2 16 30 13 27 10 24 10 24

JAN
1970
LATEST DATA PLOTTED WEEK ENOING: JULY M,

7 21

5 19

2 16 30 14 28

FEB
1971

197!

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’

H.9 RELEASE.

1/ INCLUDES MEMBER BANK DEPOSITS, BANK-RELATED COMMERCIAL PAPER, EURODOLLAR BORROWINGS OF
U.S. BANKS, AND CERTAIN OTHER NONDEPOSIT SOURCES.

1971

B I Li-IONS
CRED1T
PROXY
9
'6
23
30
7
14


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

CRED1T
PROXY
ADJUSTED

341.4
342. 1
339.9
340.5
343. 1
343.3

345.9
346.5
344.3
345. 1
347.3
347.4

COMPOUNDED ANNUAL RATES OF CHANGE,
AVERAGE OF THE FOUR WEEKS ENDING
JULY M, 1971 FROM THE FOUR
WEFKS END ING:
CRED1T
CRED1T
PROXY
PROXY
ADJUSTED
MAY
APR.
MAR.
FFB.
JAN.
DEC.
NOV.

' 2,
M,
17,
1 7,
13,
'6,
} 1
' *

PRFPARFD

by

197'
1971
1971
1971
1971
1970
1970

7.6
8.4
9. 1
1 1.3
13.0
13.7
14.6

6.9
6.0
5.7
7.2
8.4
9.0
9.6

FEDERAL RESERVE BANK OF ST. LOUIS

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES ENDED FRIDAY

PER CENT

PER CENT
9.0

8.5
CORPORATE AAA BONOS
8.0

PRIME COMMERCIAL
LOAN RATE

7.5

7.0

6.5

6.0

DISCOUNT RATE

5.5

5.0

4.5

THREE-MONTH TREA3
BILL MARKET YIELD

4.0

3.5

3.0

I

15 29 12 26 10 24

7 2!

4 18

AUG

SEP

2

16 30 13 27

NOV

11 25

8 22

5 19

5 19

FEB

DEC

MAR

2 16 50 14 28 11

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING. JULY 23,

1971
MAY

7
14
21
28
JUNE
4
1 1
18
25
JULY
2
9
16
23 *
30

9 25

1971

CORPORATE
Am BONDS

3-MONTH
TREASURY
BILLS

3-5 YEAR
GOVERNMENT
SECURITIES

LONG-TERM
GOVERNMENT
SECURITIES

MUNICIPAL
BONDS K*

7.43
7.48
7.57
7.66
7.69
7.66
7.63
7.62
7.63
7.65
7.64
7.63

3.84
3.96
4. 36
4.38
4.28
4.58
4.94
4.86
5. 17
5.40
5.38
5.49

5.92
5.98
6.20
5.97
5.92
6.22
6.54
6.46
6. 70
6.70
6.64
6.79

5.92
5.96
6.04
5.90
5.79
5.89
6.06
5.98
5.97
5.92
5.82
5.91

5.85
5.96
5.96
5.86
5.70
5.87
6.00
6.23
6. 19
6.06
6.03
N.A.

* AVERAGES OF RATES AVAILABLE.
56* BOND BUYER’S AVERAGE INDEX OF 20 MUNICIPAL BONDS,
N.A. - NOT AVAILABLE


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

25

THURSDAY DATA.

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

0

SELECTED SHORT-TERM

INTEREST RATES

AVERAGES OF DAILY RATES ENDED FRIDAY

PER CENT

PER CENT

COMMERCIAL PAPER
4-T0-6 MONTH

FEDERAL FUNDS RATE

1

15 29 12 26 10 24

7 21

2

16 30 1 3 27

NOV

11

25

8 22

5 19

5 19

2 16 50 H 26 11

1970


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

PRIME

4-6 MONTH

PAPER

FEDERAL
FUNDS

PRIME
BANKERS’
ACCEPTANCES

7
I4

5.00
5.00
5.15
5.25
5.38
5.38
5.48
5.50
5.65
5.75
5.75
5.75

4.65
4.48
4.73
4.78
4.72
4.80
4.93
5.10
5.10
5. 10
5.20
5.45

4.83
4.88
4.95
5.00
5.00
5.18
5.43
5.50
5.60
5.63
5.50
5.63

21

JUNE

28
4
! 1

18
25
JULY
2
9
16
23 #
30

1971

90 DAY
CD’S K*
4.82
4.83
4.91
5.12
5.25
5.28
5.33
5. 43
5.53
5.59
5.68
5.77

COMMERCIAL

MAY

9 23

1971

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING. JULY 23,

197!

25

DEC

* AVERAGE'S OF RATES AVAILABLE. FEDERAL CUNDS l_AST FIVE DAYS AVAILABLE
H6K DATA ARE SECONDARY MARKET RATES, WEEKLY AVERAGES ENDING WEDNESDAY TWO
DAYS EARLIER.
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.9 RELEASE.
PREPARED BY FEDERAL RESERVF BANK OF 3T. LOUIS

BORROWINGS AND EXCESS RESERVES
ALL MEMBER BANKS

IN THE NATION

AVERAGES OF DAILY FIGURES

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

2.0

1.6

1.2

0.8
BORROW INGS
0.4

"V

V

0
EXCESS RESERVES

-0.4

0.8

0.8

-

-

-!

1.2

.2

-

NET FREE RESERVES

1.6

1.6

-

-

2.0

-

6 20

3 17

1

15 29 12 26

9 23

7 21

4 18

2

JAN
LATEST DATA PLOTTED WEEK ENDING. JULY 21,


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

FEB

7 21

5 19

APR

16 30 13 27 10 24 10 24

2

1 6 30 M 28

MAY

1971

MILLIONS
1971
MAY

5
12
19
26
JUNE
2
9
16
23
30
JULY 7
14
21
28

EXCESS
RESERVES
365
230
102
174
285
73
266
258
286
316
41
329

BORROWINGS
174
99
306
267
646
153
403
618
752
667
993
1122

FREE
RESERVES

-

191
131
204
93
361
80
137
360
466
351
952
793

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

2.0

-

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