Saturday, 19 January 2013

U.S. M2 Money Supply Surges, Movements in the U.S. Monetary Base and Money Supply (as of 9 Jan-13)

Money supply, especially M2 and MZM, continues to surge according to bi-weekly data released by FRED on 18 January 2013 for the period ending 9 January 2013. M2 increased by 0.67% for the bi-weekly period and 8.07% compared to the same period last year. It represented the 41th consecutive bi-weekly period of YoY growth of more than 6.0% of the M2 money supply.

Monetary Base
The Monetary Base increased 2.75% for the bi-weekly period to end on USD 2,705.4 billion, 1.72% lower than the highest base ever reported (22 Feb 2012). The base was up by 1.72% compared to the same period last year.

M1 Money Stock/Supply
The M1 Money Stock was down 0.45% for the bi-weekly period and ended the week on USD 2,429.5 billion. Compared to the same period last year, M1 increased 10.98%.

M2 Money Stock/Supply
M2 Money Stock was up 0.67% for the bi-weekly period and ended the week on USD 10,480.5 billion to reach yet another all-time high. Compared to the same period last year, M2 was up by 8.07%.

M1 Multiplier and M2/Base ratio
The M1 multiplier remains considerable lower than it was during 2007 and the majority of 2008. It has however increased steadily from around June 2011. The M2/Base ratio also remains considerably lower than the historical average, but it has also increased steadily since June 2011.