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r* 4k-r s%

Week ending: October 7, 1981
Bw 0ver lon8er periods of time the growth of the adjusted monetary
nominates the growth of money (M1B). For example, over the last 9
fTCnths monetary base and M1B have both grown at about a 5 percent rate.
However, during shorter periods of stable base growth, fluctuations in
currency growth will be associated with fluctuations in bank reserve growth.
These short-run fluctuations in reserve growth will in turn lead to short-run
fluctuations in the growth of bank deposits.
For example, the adjusted monetary base and the adjusted bank
reserve series published in this release recently have shown somewhat
dissimilar growth rates. From the four weeks ending July 22 to the four
weeks ending September 23, the adjusted monetary base increased at a 3.9
percent rate, while adjusted bank reserves increased at a 7.6 percent rate.
The latter increase represents a sharp turnaround in reserve growth, whereas
the cited base growth is similar to that observed over the prior two-month
period.
This discrepancy is associated with the fact that the growth of
currency has slowed markedly in the last two months. Over the recent period
from the four weeks ending July 22 to the four weeks ending September 23,
currency held by the nonbank public increased at a 2.9 percent rate. In
contrast, from the four weeks ending May 20 to the four weeks ending July 22,
currency holdings increased at a 5.9 percent rate. Since the recent slowdown
in currency growth has not coincided with a slowdown in adjusted monetary
base growth, reserve growth has accelerated.
The recent increase in adjusted bank reserve growth has coincided
with a similar turnaround in M1B growth resulting from an increase in
transaction deposits. However, the adjusted bank reserve growth over the last
two months is still faster than the growth of M1B over the same period. In
part, this phenomenon is explained by the increase in the growth of savings
plus small time deposits at commercial banks, detailed in the table below.
Some of the recent reserve growth is being held against the increases in these
deposits, as well as increases in the transaction deposits included in M1B.
Growth Rates of Adjusted Monetary Base and Bank Reserves
and Selected Components of Money Stock Measures

Period

Adjusted
monetary
base

5/20/81­
7/22/81

4.2 %

7/22/81­
9/23/81

3.9

Adjusted
bank
reserves

-1.2

7.6

%

Currency
held by
non-bank
public

5.9

2.9

%

Savings plus small
time deposits at
commercial banks

M1B

-4.1

%

3.7

Prepared by Federal Reserve Bank of St. Louis


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

Released- October 9, 1981

5.9

9.2

%

'

2
ADJUSTED MONETARY BASE
AVERAGES OF DAILY FIGURES

SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
174

BILL I ONS,
— SEP

172

168.5
168.5
168.6
169.2
168.1
167.7

170

168

166

160

158

AUG

SEP

JAN

FEB

LATEST DATA PLOTTED WEEK ENDING-. OCTOBER 7,

MAR
1981

THE ADJUSTED MONETARY BASE CONS I STS OF: ( 1 ) MEMBER BANK RESERVES AT THE FEDERAL RESERVE
BANKS, (2) CURRENCY IN CIRCULATION {CURRENCY HELD BY THE PUBLIC AND IN THE VAULTS OF
COMMERCIAL BANKS), AND ( 3 ) AN ADJUSTMENT FOR RESERVE REQUIREMENT RATIO CHANGES.
THE
MAJOR SOURCE OF THE ADJUSTED MONETARY BASE IS FEDERAL RESERVE CREDIT.
DATA ARE COMPUTED
BY THIS BANK.
A DETAILED DESCRIPTION OF THE ADJUSTED MONETARY BASE IS AVAILABLE FROM
THIS BANK.

ADJUSTED MONETARY BASE
COMPOUNDED ANNUAL RATES OF CHANGE

AVERAGE OF FOUR WEEKS ENDING:

10/8/80

1/7/81

3/4/81

4/8/81

5/6/81

6/10/81

7/8/81

8/5/81

5.8
5.8
6.4
6.4
5.8
6.2
6.0
5.2

4.8
5.9
6. 1
5.2
5.9
5.6
4.6

7.6
7.2
5.7
6.6
6. 1
4.8

8.0
5.7
6.8
6. 1
4.5

3.9
5.9
5.3
3.6

5.6
4.9
2.8

6.8
3.4

0.3

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
3/ 4/81
4/ 8/81
5/ 6/81
6/10/81
7/ 8/81
8/ 5/81
9/ 9/81
10/ 7/81


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

ADJUSTED BANK RESERVES 1/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
50 ---------- 1---------- 1----------

ILL IONS OF DOLLARS
----- ------------------------- 50

BILLIONS
47.6
47.0
46.9

6

20

AUG

3

17

SEP

I

IS 29

12

26 10 24

OCT
NOV
1980

DEC

7

21

JAN

4

18

FEB

4

18

MAR

LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 30,

11 I 1 I I I I

1

/
1981

!/ FEDERAPRES^VrBAKiE(iE)SCURRENCYCHELDLBYBC0»!»lRC?ALAB!5NKSB)L,C ‘ MEMBER BANK RESERVES AT

ADJUSTED BANK RESERVES
COMPOUNDED ANNUAL RATES

CHANGE,

AVERAGE OF FOUR WEEKS ENDING:

10/1/80

12/31/80

3/4/81

4/1/81

4/29/81

5/27/81

2. 1
2.2
2.3
3.3
3.5
2.9
4.5
2.8

0.9
1.3
3.2
3.5
2.6
4.8
2.6

2.8
5.7
5.4
3.8
6.6
3.4

7.2
6.2
4.0
7.3
3.5

7.7
4.4
8.3
3.6

1.2
7.3
1.9

7/1/81

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
3/ 4/81
4/ 1/81
4/29/81
5/27/81
7/ 1/81
7/29/81
9/ 2/81
9/30/81


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

8.9
0.9

7/29/81

2.5

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

3

4
MONEY STOCK ( Ml A )
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
400
BILLIONS
AUG.

JAN

FEB

26

361.6
360.9
359.8
360.9
358.9
358.4

MAR

LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 30,

1981

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.
MIA CONSISTS OF CURRENCY AND COIN PLUS COMMERCIAL BANK DEMAND DEPOSITS HELD BY THE NONBANK
PUBLIC EXCLUDING THOSE HELD BY FOREIGN BANKS AND OFFICIAL INSTITUTIONS.

MONEY STOCK ( MIA )
COMPOUNDED ANNUAL RATES OF CHANGE,
10/1/80

12/31/80

3/4/81

4/1/81

-20.4
-15.5
-13.0
-12.8
-11.2
-9.5
-9.4

-1 .9
-1 .6
-4.8
-4.0
-3.0
-3.7

0.7
-4.4
-3.5
-2.4
-3.3

AVERAGE OF FOUR WEEKS ENDING:

4/29/81

5/27/8 1

7.3
5.2
3.4
4.3

-7.0
-4. 1
-5.0

7/1/81

7/29/81

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
3/ 4/81
4/ 1/81
4/29/81
5/27/81
7/ 1/81
7/29/81
9/ 2/81
9/30/81


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

-1 1.5
-10.7
-9. 1
-8. 1
-8.7
-7.9
-7.0
-7. 1

0.6
-2. 1

-2.8

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK ( MlB )
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
450 r---------1---------- ,--------

BILLIONS OF DOLLARS
------------------- -------- =3 450

BULLIONS
AUG.

432.6
431.8
432.7
433.6
429.3

I I I I
JAN

FEB

MAR

1980
LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 30,

1981

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.
M1B CONSISTS OF MIA PLUS OTHER CHECKABLE DEPOSITS AT ALL DEPOSITARY INSTITUTIONS.

MONEY STOCK ( Ml B )
COMPOUNDED ANNUAL RATES OF CHANGE,
10/I/80

12/31/80

5.9
6.7
9.2
7.6
5.3
5.2
5.3
4.7

1 1.0
14.6
10.8
6.7
6.5
6.4
5.5

3/4/81

4/1/81

18.5
10.6
4.4
4.5
4.8
3.8

10.5
2.6
3. 1
3.8
2.8

AVERAGE OF FOUR WEEKS ENDING:

4/29/81

5/27/8 1

7/1/81

7/29/81

6.7
3.3
0.8
1.0

-3.0
0. 1
-0.4

5.5
3. 1

2.3

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
3/ 4/81
4/ 1/81
4/29/81
5/27/81
7/ 1/81
7/29/81
9/ 2/81
9/30/81


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

PREPARED BY FEDERAL RESERVE BANK OF ST.

5

LOUIS

6
YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT

22.0

22.0

21 .0

2t .0
PRIME BANK
LOAN RATE

20.0

20.0
19.0

90 DAY CD'S

18.0
17.0
16.0

COMMERClAL
PAPER

15.0

15.0
14.0

14.0

13.0

13.0
CORPORATE
Aaa BONDS

12.0
11 .0

10.0

10.0

9.0
8.0
7.0

5

NOV

19

2

16 30

13 27

13

27

10

24

8 22

5

16

3

17

31

14

28

11

25

S 23

DEC

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING; OCTOBER 9, 1981

90 DAY
CD'S

I9B1
AUG.

SEP.

OCT.

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

PRIME
COMMERC1AL
PAPER *X*

PRIME
BANKERS'
ACCEPTANCES

CORPORATE
Aaa BONDS

CORPORATE
Baa BONDS

MUNICIPAL
BONDS **

18.04
17.88
18.03
18.02
17.74
17.61
16.57
16.01
16.48
15.55

17. 16
16.95
17. 15
16.94
16.80
16.71
15.78
15.36
15.89
14.98

17.41
17.23
17.34
17.24
17.07
16.78
15.89
15.44
15.83
14.98

14.82
14.62
14.78
15.21
15.50
15.61
15.30
15.35
15.85
15.43

16.31
16.21
16.25
16.54
16.77
16.96
16.88
16.87
17.25
17. 1 1

11.63
11.94
12.49
12.97
13. 10
13.21
12.79
12.57
12.93
N.A.

IK AVERAGES OF RATES AVAILABLE.
*# BOND BUYER'S AVERAGE INDEX OF 20 MUNICIPAL BONDS, THURSDAY DATA.
**# DATA ARE 4-MONTH COMMERCIAL PAPER RATES.
N.A. - NOT AVAILABLE


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

0

SELECTED

INTEREST RATES

AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT

PERCENT
22.0

22.0 rr

E

E

EDERA L FUND. RATE
\
v

i

=

13.0

TTTT TTTT

14.0

E
/
/

E

10.0
9.0

\
A v

\

K

t

t—•

J

\

\

17.0

Vi

=A

16.0
15.0

“w*** ***

14.0

E

A
l

5-YE/
TREASU RY SEC\R 1 T 1 ES
:ur

13.0

12.0

z
1 l .0

DISCOU NT
RATE

=/,

Z

\

z>

1 1.0

\ JA

^-------\
\

,A

\

E

\

3-MONT H
ASURY

f J

TTTT

12.0

/

/

j'

19.0

E

J

18.0

\

\

l\

16.0

>

J

=

J \,

f

17.0

15.0

T
V
'
______\

1
t

20.0

1

<

18.0

J i l l J in

19.0

21 .0

IN I

E

in i

20.0

E

z

V

21.0

—

Z

/

E

J

10.0
9.0

E
8.0

E

E

7.0
0

7.0

Lux.
1AUG
15

.ILL 1111
28 12
SEP

2610 24
OCT

111
7 21
NOV

111 .ini
5 19
DEC

2 16
JAN

111

.1 LL _LLL INI

30FEB 27MAR 27APR 24
13
13
10

1980

8
MAY

22

111
5 19
JUN

1111
3 17
JUL

111

111

31AUG
14

28 11
SEP

AUG.

SEP.

OCT.

7
14
21
28
4
t 1
18
25
2
9 Hi
16
23
30

FEDERAL
FUNDS KX
18.25
18.29
18. 19
17.41
16.89
16.50
16.09
15.33
15.00
15.46

0
25 9 23
OCT

1981

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: OCTOBER 9,

1981

w

3-MONTH
TREASURY
BILL
15.43
15.25
15.63
15.71
15.59
15.14
14.35
14.29
14.37
13.93

6-MONTH
TREASURY
BILL Hum.
15.57
15.12
15.64
15.85
15.65
15.80
14.66
14.13
14.93
14.22

1-YEAR
TREASURY
BILL
14.63
14.43
14.70
14.99
15.05
14.80
14.21
14.16
14.54
13.80

5-YEAR
TREASURY
SECURITIES
15.45
15.13
15.51
16.04
16.13
16.07
15.70
15.73
16.11
15.50

1981

LONG-TERM
TREASURY
SECURITIES
14.06
13.71
13.89
14.45
14.64
14.63
14.29
14.49
15.05
14.47

* AVERAGES OF RATES AVAILABLE.
** SEVEN-DAY AVERAGES FOR WEEK ENDING WEDNESDAY TWO DAYS EARLIER THAN DATE SHOWN.
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.9 RELEASE.
*** NEW ISSUE RATE
RATES ON LONG-TERM TREASURY SECURITIES ARE COMPUTED BY THE FEDERAL RESERVE BANK OF ST. LOUIS.
TREASURY BILL YIELDS ON DISCOUNT BASIS.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

7

8
MULTIPLIERS!/
CURRENCY OF MONEY STOCK MEASURES 2/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

RATIO
MONEY MULTIPLIERS

RATIO

I I I I I I I I I I I I I I II
LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 30,

1981

BILLIONS OF DOLLARS
124 ---------- .---------- 1--------

BILLIONS OF DOLLARS
------------------- ----------- 124

~

COMPOUNDED ANNUAL RATES
OF CHANGE, AVERAGE OF
---- THE FOUR WEEKS END ING
SEPTEMBER 30, 1981 FROM
THE FOUR WEEKS ENDING:
JUL.
JUL.
MAY
APR.
APR.
DEC.
OCT.

29,
1,
27,
29,
I,
31,
1,

1981
1981
1981
1981
1981
1980
1980

1.9
4.8
3.9
4.8
5.9
5.8
6.5

CURRENCY

Mi
AUG.

I I I I I I I I I I I I I I I I I

I I I I
1

AUG

SEP

OCT
1980

NOV

DEC

JAN

FEB

MAR

LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 30,

15 29

APR

BILLIONS

26

13 27

10 24

MAY
JUN
1981

8 22

5

19

AUG

2

1i

SEP

1981

1/ RATIO OF MONEY STOCK (MIA) OR ( M1B ) 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

DEMAND DEPOSIT COMPONENT OF MONEY STOCK (MIA)
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
280
BILLIONS
AUG.

26

-

235.8
235.7
234.0
235.5
233.8
233.3

275
270
265
260
255
250
245
240
235
230

JAN

FEB

MAR

MAY

JUN

1980
LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 30,

1981

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.6 RELEASE.

DEMAND DEPOSIT COMPONENT OF MONEY STOCK (MIA)
COMPOUNDED ANNUAL RATES OF CHANGE,
10/1/80

12/31/80

3/4/81

4/1/81

AVERAGE OF FOUR WEEKS ENDING:

4/29/81

5/27/81

7/1/81

7/29/81

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
3/ 4/81
4/ 1/81
4/29/81
5/27/81
7/ 1/81
7/29/81
9/ 2/81
9/30/81

-19.2
-18.2
-16.2
-15.0
-15.3
-14.4
-13.1
-12.9

-30.8
-24.9
-21.5
-20.7
-18.8
-16.4
-15.9


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

-7.4
-6.7
-10.0
-9.1
-7.5
-8.0

-3.7
-9.2
-8.3
-6.6
-7.3

-12.2
-10. 1
-7.5
-8.2

-12.2
-8.2
-8.8

-2.6
-5.3

-5.3

PREPARED BY FEDERAL RESERVE BANK OF ST.

9

LOUIS

10
SAVINGS PLUS SMALL TIME DEPOSITS
ALL

COMMERCIAL BANKS

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
510 r--------- 1---------- 1--------

BILLIONS OF DOLLARS
------------------- -------- =1 5,0

billions

=

sep!

495.8
496.4
497. I
497.7
497.3
497.0

1

AUG

SEP

OCT
1980

NOV

DEC

JAN

FEB

MAR

LATEST DATA PLOTTED WEEK ENDING:, SEPTEMBER 30,

15 29 13 27

APR

MAY

10 24

8 22

5

19

JUN
1981

1981

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.
TIME DEPOSITS ISSUED IN DENOMINATIONS OF LESS THAN *100,000.

SAV1NGS PLUS SMALL TIME DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE
10/1/80

12/31/80

AVERAGE OF FOUR WEEKS ENDING:

3/4/81

4/1/81

4/29/81

5/27/81

7/1/81

7/29/81

4.3
4.3
4.8
5. 1
6.3
6.0

3.3
4.3
4.8
6.3
6.0

5.2
5.7
7.2
6.7

6.2
8.0
7.2

9.2
7.7

8.2

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
3/ 4/81
4/ 1/81
4/29/81
5/27/81
7/ 1/81
7/29/81
9/ 2/81
9/30/81

8.0
7.8
7.0
6.7
6.6
6.6
7. 1
6.9


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

4.7
4.1
4. 1
4.5
4.8
5.7
5.5

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

BORROWINGS FROM FEDERAL RESERVE BANKS
AVERAGES OF DAILY FIGURES

BILLIONS OF DOLLARS
IMi

BILLIONS

of dollars

MILLIONS

— SEP.
1446

6 20

3

AUG

SEP

IT

I

15 28 12 26

10 24

7 21

JAN

15 29

FEB

13 27

10 24

8 22

5

18

2

16 30 14 28

MAR

LATEST DATA PLOTTED WEEK ENDING: OCTOBER 7, 1981

BUSINESS LOANS

(COMMERCIAL AND
BILLIONS OF DOLLARS
196

BILLIONS OF DOLLARS
196

~

1

1

COMPOUNDED ANNUAL R TES
OF CHANGE. AVERAGE F
THE FOUR WEEKS END IN
SEPTEMBER 30. 1981
ROM
THE FOUR WEEKS END INIG:

1

-

INDUSTRIAL)

WEEKLY REPORTING LARGE COMMERCIAL BANKS
SEASONALLY ADJUSTED

184

- JUL.
- JUL.
“ MAY
“ APR.
~ APR.
_ DEC.
_ OCT.

29,
1,
27,
29,
1,
31,
1,

1981
1981
1981
1981
1981
I960
1980

18.2
18.8
19. 1
21.8
20.4
10.7
13.2

/Sy^J

=

180

176

-

E

176
,

172

168

/

172

"V

I

198

SEP.

■in

111

u 11

111

1111

j 11, -LI 1

■111

1 1 1 I

7 21

OCT
1980

1

JAN

APR

LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 30,


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

15

i i i

111

29 13 27 10 24

MAY

JUN
1981

MILLIONS
26
2
9
16
23
30

184,503
186,282
185,384
186,115
185,518
187,724

5
-

Z
“
“

Mill XLLLLLLLLLLL 8
8 22

JUL

5

19

AUG

2

16 30 14 28

SEP

OCT

198!
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

11

168

12
LARGE TIME DEPOSITS

ALL COMMERCIAL BANKS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

billions of dollars

275 p-

15 29 13 27 10 24
JAN

FEB

8 22

5 19

2 16 30 14 28

MAR

LATEST DATA PLOTTED WEEK ENDING-. SEPTEMBER 30,

1981

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.
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

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