Tuesday, 20 January 2015

U.S. Monetary Statistics 1960-2014: A Quick History Lesson

The annual monetary statistics for the U.S. were recently published by St. Louis Fed economic data (FRED). The table below lists some of the key data the Federal Reserve tries to affect and control. Here's a short history lesson based on the table and the data it is based on:
  • The Monetary Base has increased from $201.3 billion in 1985 to $3.9427 trillion in 2014, an increase of 1,759%. 
  • The M1 Money Supply has increased from $140.4 billion in 1959 to $2.8062 trillion in 2014, an increase of 1,799%.
  • The M2 Money Supply has increased from $293.2 billion in 1959 to $11.3541 trillion in 2014, an increase of 3,672%.
  • Bank Credit, which consists of the securities owned and the loans issued by U.S. Commercial banks, has increased from $390.0 billion in 1973 to $10.4898 trillion in 2014. During the same period, securities increased 1,560% while lending expanded 3,134%. Real Estate loans and Consumer loans increased 5,628% and 7,577% during the same period.
  • Treasury yields have been historically low in recent years as is widely known. Based on data since 1960, the 1-year yield averaged the lowest level ever in 2014 while the 10-year yield was somewhat higher in 2014 than the averages in 2012 and 2013.




EcPoFi reports on U.S. money supply developments on a weekly basis here.