Well this surprised me:
Graph #1 |
I found the "Currency Component of M1 Plus Demand Deposits" quite by accident. The blue line. The red line is M1. What's the difference?
M1 is made up of four things:
- Notes and Coins in Circulation
- Demand Deposits
- Traveler's Checks
- Other Checkable Deposits
If I add Traveler's Checks to the blue line, the gap between red and blue will be entirely due to "Other Checkable Deposits". Here you go:
Graph #2 |
But I want to see the growth and change of Other Checkable Deposits as a portion of M1.
Graph #3 |
2 comments:
Hi Art,
On your Graph #3, that big drop you see in the mid 90's is due to sweeps.
Sweeps reduce the amount counted as being in transaction accounts. It looks like as of 2008 more than half the "Other Checkable Deposits " were not being counted.
This is what the graph would look like if they were counted:
http://research.stlouisfed.org/fred2/graph/?g=jmE
Wow, Jim... I'm glad I didn't draw any conclusions about why my graph shows that drop-off!
That's a terribly big difference, counting and not counting sweeps.
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