Federal Reserve Bank
---- of St. Louis
thSrftnancial DataSEP 0 s 198B September 4, 1986
The money multiplier is the ratio of Ml to the adjusted monetary base. This ratio is sensitive to changes in the portfolio preferences of individuals, businesses and depository institutions because reserves must be held against both checkable deposit liabilities, which are included in Ml, and nonpersonal time deposits, which are not. Because time deposits are not included in Ml, an increase in these deposits tends to absorb a larger proportion of the monetary base, leaving less available as reserves against deposits in Ml. Thus, changes in the Ml multiplier and nonpersonal time deposits should vary inversely.
This relationship can be exhibited with data for total time deposits (see page 9). Since early February, as the multiplier increased at an annual rate of 8.6 percent, total time deposits declined at a 2.5 percent rate. This behavior contrasts with changes during the previous six months when total time deposits increased at a rate of 8.2 percent and the multiplier was little changed (see page 4).
—Michael T. Belongia
niKFEDERAL
A RESERVE XlLVNKof «r ST IIHIS
Views expressed do not necessarily reflect official positions of the Federal Reserve System.Digitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
2
BILLIONS OF DOLLARS 2SO
ADJUSTED MONETARY BASEAVERAGES OF DAILY FIGURESSEASONALLY ADJUSTED BY THIS BANK
248
246
244
242
240
238
236
234
232
230
228
3 IT 31 14 28 II 28 9 23 6 20 4 19 I 18 29 12 29 12 20 9 23 7 21JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY
1985 1986
LATEST PLOTTED RESERVE MAINTENANCE PER 100 EMHNGi AUGUST 27, 1986
BILLIONS OF DOLLARS 250—1—I—
- iisa BILLJUN. 18 243.
- JUL. 2 244.18 245.30 246.
_ AUG. 13 246.27 247.
—IONS
696 y418
- JV
-
- / -
-/V/
-
- A -
- —-—l -
- J -
- -
- -
xlll 111 JJX LLLL -LLL JXL 1X1.1 JJX JXL 1 1 IX JXL JJX 11 i,i XXL jjy
248
246
244
242
240
238
236
234
232
230
10 30 13 27 10 24JUL AUG SEP
c?rculat/on°TCURRENCY I.............-............ ..........^5 AN ADJUSTMENT FOR RTOF THE ADJUSTED MONETARY BASE IS FEDERAL I A DETAILED DESCRIPTION OF THE ADJUSTED MO
flBNI OT'fc1 WOTtToW1--------------------------RATI0 r......... — -----------------
IS AVAILABLETHE MAJOR
__ ' BY THISMS BANK.
RECENT DATA ARE PRELIMINARY.
ADJUSTED MONETARY BASE
COMPOUNDED ANNUAL RATES OF CHANGE,
AVERAGE OF TWO MAINTENANCE PERIODS ENDINGt
8/28/85 11/20/85 1/29/86 2/26/88 3/26/86 4/23/86 5/21/86TO THE AVERAGE OFTWO MAINTENANCE PERIOOS ENDINGt
1/29/86 6.02/26/86 7.6 9.43/26/86 7.3 8.4 11.04/23/86 6.9 7.7 8.8 4.75/21/86 7.4 8.3 9.4 6.9 7.97/ 2/86 7.7 8.5 9.4 7.7 8.5 10.27/30/86 7.8 8.6 9.4 8.0 8.7 9.9 9.48/27/86 7.6 8.2 8.9 7.6 8.1 8.9 8.2
PREPARED BY FEDERAL RESERVE BAMC OF ST. LOUIS
Digitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
BILLIONS OF DOLLARS
MONEY STOCK (Ml )AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED BILLIONS OF DOLLARS 700
JUL. 21 677.7677.1679.8685.0688.0688.6
I 15 20 12 20 0 25 7 21 4 18 2 10 30 15 27 10 24 10 24 7 21 5 10 2 10 50 14 II 25 8 22OCT NOV JAN FEB APR MAY JUL AUG
690
680
670
660
650
640
630
620
LATEST DATA PLOTTED WEEK ENDINGi AUGUST 25, 1986
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.6 RELEASE.
DEPoI|TSEANDMTRAVELEr|NCHeSs> BY THE N0NBAff< PU6LIC’ OEMAt® DEPOSITS, OTHER CHECKABLE
MONEY STOCK (Ml )
COMPOUWED ANNUAL RATES OF CHANGE , AVERAGE OF FOUR WEEKS ENDING:
8/26/85 11/25/85 1/27/86 2/24/86 3/24/86 4/28/86 5/26/86 6/23/86TO THE AVERAGE OF FOUR WEEKSENDING;
1/27/86 9.42/24/86 8.8 7.73/24/86 9.6 9.3 10.04/28/86 10.3 10.5 11.7 14.65/26/86 12.0 13.0 15.3 18.5 20.26/23/86 12.6 13.7 15.9 18.5 19.7 23.17/28/86 12.9 14.0 15.9 17.9 18.6 20.2 17.08/25/86 13.4 14.6 16.5 18.2 18.9 20.3 18.0 17.7
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS
3Digitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
4
MONEY MULTIPLIERi/CURRENCY COMPONENT OF MONEY STOCK 2/
AVERAGES OF DAILY FIGURES SEASONALLY ADJUSTED
RATIO
Ml MULTIPLIER
1 is 29 12 aa 9 » r at 4 le 2 te so 13 zr 10 24 10 24 1 21 9 19 2 le 90 14 29 11 29 9 22JUL AUGOCT NOV JAN FEB
RATIO2.9
2.8
2.7
2.6
LATEST DATA PLOTTED T90 WEEKS ENDING' AUGUST 25, 1988
BILLIONS OF DOLLARS BILLIONS OF DOLLARS 182
COMPOUNDED ANNUAL RATES__ OF CHANT*. AVERAGE OF .THE FOUR ta«S ENDING- AUGUST 25. 1*86 FROM
THE FOUR *EEKS ENDING*
~ JUN. 23, 1986 7.4- MAY 26 1986 7.2
APR. 28, 1986 7.9- MAR. 24 1986 7.2_ FEB. 24 ltt§ 7.1
NOV. 25. 1985 7.3CURRENCY
iafi£ BILLIONS JUL. 21 177.6aug. ^ IS:!
I I I I 1 I II 19 29 12 29 9 29 7 21 4 19 2 19 90 19 27 10 24 10 24 7 21 9 19 2 16 90 14 29 II 29 « 22
OCT NOV JAN FEB
180
178
176
174
172
170
168
166
0
1965
LATEST DATA PLOTTED WEEK ENDING* AUGUST 25, 1986
1/ RATIO OF MONEY STOCK (Ml I TO ADJUSTED MONETARY BASE
2/ CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.S RELEASE.
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS
Digitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
BILLIONS OF DOLLARS
TOTAL CHECKABLE DEPOSITSAVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED BILLIONS OF DOLLARS510 pr
493.7
495.1
502.6502.9
1 13 29 12 26 9 23 7 21 4 18 2 16 SO 13 27 10 24 10 24 7 21 5 19 2 16 SO 14 26 II 23 8 22OCT NOV JAN FEB APR MAY JUL AUG
490
480
470
440
LATEST DATA PLOTTED WEEK ENDING: AUGUST 25, 1986
IS THE SUM OF DEMAND DEPOSITS AND OTHER CHECKABLE DEPOSITS AT ALLDEPOSITORY INSTITUTIONS.
TOTAL CHECKABLE DEPOS ITS
COMPOUNDED ANNUAL RATES OF CHANGE , AVERAGE OF FOUR WEEKS END 1NG:8/26/85 1*1 Z25/85 1/27/86 2/24/86 3/24/86 4/28/86 5/26/86 6/23/86
TO THE AVERAGEOF FOUR WEEKSENDING:
1/27/86 10.32/24/86 9.4 7.63/24/86 10.6 10. 1 11.34/28/86 1 1.7 1 1.9 14.0 18.45/26/86 13.9 15.2 18.7 23.3 25.66/23/86 14.7 16.3 19.6 23.4 25.0 29.27/28/86 15.2 16.7 19.5 22.5 23.4 25.3 21.28/25/86 15.9 17.4 20. 1 22.7 23.5 25.0 22.0 21.4
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS
5Digitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
6
YIELDS ON SELECTED SECURITIESPERCENT AVERAGES OF DAILY RATES
I ME BANK>AN RATEMUNICIPAL
5 19 2 16 3Q 15 27 II 25 8 22 0 20 3 17 31 14 28 14 28 II 25 9 23 A 20 4 18 I IS 29 12 28JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP
1985 1986LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDINGt SEPTEMBER 5, 1986.
198690 DAY
CD'S30-DAY
COMMERCIALPAPER
90-DAYBANKERS'
ACCEPTANCESCORPORATEAaa bonds
CORPORATEBaa BOWS
MUNICIPAL BONDS *ft
JULY 4 6.51 6.71 6.39 8.93 10.15 7.511 1 6.43 6.59 6.33 8.89 10.14 7.45IB 6.33 6.34 6.21 8.84 10.10 7.4525 6.31 6.28 6.17 8.86 10. 17 7.60
AUG. 1 6.29 6.28 6. 17 8.88 10.28 7.548 6.21 6.26 6.08 8.85 10.29 7.53
15 6.03 6.17 5.94 8.74 10.26 7.3322 5.82 5.95 5.72 8.66 10.12 7.0629 5.57 5.64 5.46 8.62 10.04 6.93
SEP. 5 * 121926
5.45 5.59 5.39 8.68 10.06 N. A.
NOTEs CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.15 RELEASE. « AVERAGES OF RATES AVAILABLEm BOND BUYER'S AVERAGE INDEX OF 20 MUNICIPAL BONDS. THURSDAY DATA N.A. - NOT AVAILABLE
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS
Digitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
PERCENT
SELECTED INTEREST RATESAVERAGES OF DAILY RATES
RATE
5-YEARTREASURY SECURITIES
-
DISCOUNT RATE
TREASt
5 19 2 10 30 13 27 II 25 8 22 0 20 9 17 31 M 28 14 28 11 25 9 29 8 20 4 18 I 15 20 12 28SEP OCT FEB MAR APR JUN JUL
PERCENT11.0
0.0
5.0
LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING* SEPTEMBER 5, 1986.
1886FEDERALFUNDS**
3-MONTHTREASURY
BILL
6-MONTH TREASURY BILL *8191
1-YEARTREASURY
BILL
5-YEAR TREASURY
SECURITIES
LONG-TERMTREASURY
SECURITIES
JULY 4 7.02 5.97 5.96 5.98 7.21 7.831 1 6.87 5.86 5.85 5.92 7.13 7.8318 6.51 5.75 5.80 5.83 6.91 7.7625 6.42 5.78 5.77 5.89 7.01 7.94
AUG. 1 6.32 5.83 5.89 5.9! 7. 10 8.098 6.36 5.71 5.73 5.8! 7.06 8.01
15 6.31 5.60 5.60 5.67 6.87 7.7322 6.38 5.48 5.65 5.52 6.70 7.6129 5.e7 5.27 5.35 5.36 6.55 7.6!
SEP. 5 X 121926
5.83 5.22 5.17 5.33 6.45 7.70
IENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.15 RELEASE EXCLUDING LONG-TERM TREASURY ‘?JTJj^WHJCH ARE COMPUTED BY THIS BANK. TREASURY BILL YIELDS ARE ON A DISCOUNTBASIS.
* AVERAGES OF RATES AVAILABLEAY AVERAGES_FOR^WEEK ENDING TWO DAYS EARLIER THAN DATE SHOWN
! AUCTION AVERAGE (DISCOUN
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS
7Digitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
8
BILLIONS OF DOLLARS 415
COMMERCIAL BANK SMALL TIME DEPOSITSi/ LARGE TIME DEPOSITS 2/
AVERAGES OF DAILY FIGURES SEASONALLY ADJUSTED
405
375
BILLIONS OF DOLLARS 415-------------1---------- 1------------- 1----------
I 1986 BILLIONS
- JUL. 21 379.7_ ^ 28 378.7
AUG. 4 377.0
-
1 i
i i
i
1825
375.7374.8
SMALL TIME >EPOS
1 1
1 1
--
- -
!llll 111 im 111 111 1111 -LLL -LLL 1.1,1 1 -LLL -LLL 1 1 1.1. -LLL -LLLw
375
LATEST DATA PLOTTED WEEK ENDING. AUGUST 25, 1080
BILLIONS OF DOLLARS BILLIONS OF DOLLARS 295
.1886 BILLIONSJUL. 21
280.7
LARGE TIME DEPOSITS
5 19 2 10 90 14 28 II 25 8 224 18 2 16 90 19 27 10 24 10 24 7 21I 19 29 12 26 9OCT NOV
290
275
LATEST DATA PLOTTED WEEK ENDING. AUGUST 25, 1980
1/ TIME DEPOSITS ISSUED IN DENOMINATIONS OF LESS THAN 9100,000
2/ TIME DEPOSITS ISSUED IN DENOMINATIONS OF 9100,000 OR MORE
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS
Digitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
BILLIONS OF DOLLARS
COMMERCIAL BANK TOTAL TIME DEPOSITS
AVERAGES OF DAILY FIGURES SEASONALLY ADJUSTED
BILLIONS OF DOLLARS 810- 1 1
- lSfifi BILL!“ JUL. 21 793.- . 28 792.fi- AUG. 4 791.3- 11 793.3- 18 793.7- 25 794.2
rSXG.
1111
1\
l/N-
TTTT
J..111
. / \“
INI. - * ■
V\r -
-
IIII
-
c=s>V
5
-----^
IIII
'Illll
/
-LI 1 -ii 11 XI 1 XLL 1 1 1 1 1 1 1 1 1 1 llll Ml i 11 iiii 111 mi i i , ?*1 1. « 12 a> V 23 7 II 4 IS I IS 90 IS 17 10 14 10 14 7 II 5 IS I IS 91JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
1885 1S86
14 21 II ;JUL AUG
8 22 SEP
800
70S
785
780
775
LATEST DATA PLOTTED WEEK ENDING. AUGUST 25. 1888
TOTAL TIME IS THE SIM OF SAVINGS DEPOSITS, SMALL TIME DEPOSITS AND LARGE THE DEPOSITS.
TOTAL TIME DEPOSI TS
COM>OUM)ED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING!8/26/85 11/25/85 1/27/86 2/24/86 3/24/86 4/28/86 5/26/08 6/23/86
Sf° ft8SrWENDINGt
1/27/86 8.32/24/8© 8.2 11.73/24/86 6.4 7.5 1.34/28/86 5.4 5.8 0.8 -2.25/26/86 3.9 3.3 -1.6 -4.3 -4.16/23/86 3.0 2.2 -2.2 -4,4 -4.3 -6.87/28/86 2.7 2.0 -1.7 -3.4 -3.0 -4.2 -1.98/25/86 2.5 1.7 -1.6 -2.9 -2.8 -3.3 -1.5 -0.1
PREPARED BT FEDERAL RESERVE BAM OF ST. LOUIS
9Digitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
10
BORROWINGS FROM FEDERAL RESERVE BANKSAVERAGES OF DAILY FIGURES BILLIONS OF DOLLARS
----------- ,------------- ■------------- 6.0BILLIONS OF DOLLARS
6.0 ------ ----- ---
TOTAL BORROWINGS
LATEST DATA PLOTTED WEEK ENDING* SEPTEMBER 3. 1986BILLIONS OF DOLLARS ---------1---------- 1---------- 2.5
BILLIONS OF DOLLARS
♦ SEASONALADJUS1
I 19 29 12 26 12 29 • 23 7 21 4 18 2 16 SO 13 27 10 240 20 4 103 17 31 14 20 II 28 9MAY JUNNOV DEC
LATEST DATA PLOTTED WEEK ENDING* SEPTEMBER 3. 1986
1/ 93.767 FOR 11/27/85
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS
Digitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
COMMERCIAL PAPER OF NONFINANCIAL COMPANIESNOT SEASONALLY ADJUSTEDJILL IONS OF DOLLARS
95------------,--------- ,-----BILLIONS OF DOLLARS ------------------------------- 95
81,42580,050
- AUG. 6
3 17 31 14 28 11 25 0 23 8 20 4 18 I 15 28 12 28 12 28 9 23 7 21 4 18 2 18 30 13 27 10 24SEP OCT
1985NOV DEC JAN FEB MAR APR MAY
1986JUN JUL AUG SEP
LATEST DATA PLOTTED WEEK ENDINGi AUGUST 27, 1986
BUSINESS LOANS u ( COMMERCIAL AND INDUSTRIAL )
WEEKLY REPORTING LARGE COMMERCIAL BANKS 2/SEASONALLY ADJUSTEDBILLIONS OF DOLLARS
262 ------------- ,---------- ,------BILLIONS OF DOLLARS
------------------------------- 262COMPOUNDED ANNUAL RATES OF CHANGE. AVERAGE OF
- THE FOUR *EF.KS ENDING AUGUST 20. 1986 FROM THE FOUR WEEKS ENDINGt
— JUN. 18, 1986 -2.9MAY 21APR. 23, 1986MAR. 19, i986 -1.5
“ FEB. 19, 1986NOV. 20, 1985AUG. 21
257,546
256,303257,799
257,725
limn.................3 17 31 14 28 11 25 9 23 8 20 4 18 I 15 29 12 28 12 28 9 23 7 21 4 18 2 18 SO 13 27 10 24NOV DEC FEB MAR MAY JUN AUG SEP
LATEST DATA PLOTTED WEEK ENDINGt AUGUST 20, 1986
1/ BUSINESS LOANS INCLUDE BANKERS' ACCEPTANCES AM) COMMERCIAL PAPER.
2/ BANKS WITH DOMESTIC ASSETS GREATER THAN 81.4 BILLION
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS
11Digitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis