Web Links

• p. 344: For Federal Reserve data concerning the latest trends in the monetary aggregates, go to http://www.federalreserve.gov/releases/, and click on "H.6 Money Stock Measure."
• p. 349: To learn more from the Bank for International Settlements about worldwide banking developments, go to http://www.bis.org/publ/index.htm. Select "BIS Annual Report."

Issues and Applications Web Resources:

• Learn more about the U.S. Mint by going to its home page http://www.usmint.gov/about_the_mint/.
• To learn about the printing of currency in the United States, go to the home page of the Bureau of Engraving and Printing at http://www.moneyfactory.com/

What's Happened to the Money Supply?
Deposits at banks and other financial institutions make up a portion of the U.S. money supply. This exercise gives you the chance to see how changes in these deposits influence the Fed's measures of money.

     Title: FRED (Federal Reserve Economic Data)

     Navigation: Go to http://research.stlouisfed.org/fred2/categories/24/ to visit the Web page of the Federal Reserve Bank of Saint Louis.

Application

1. Select the data series for Demand Deposits at Commercial Banks (Bil. of $; M), either seasonally adjusted or not. Scan through the data. Do you notice any recent trend? (Hint: Compare the growth in the figures before 1993 with their growth after 1993.) In addition, take a look at the data series for currency and for other checkable deposits. Do you observe similar recent trends in these series?

2. Back up, and click on Ml Money Stock (Bil. of $; M), again, either seasonally adjusted or not. Does it show any change in pattern beginning around 1993?