tag:blogger.com,1999:blog-2098432983500045934.post3281744906609319092..comments2024-03-12T22:19:32.339-04:00Comments on The New Arthurian Economics: But saving is its own reward!The Arthurianhttp://www.blogger.com/profile/16501331051089400601noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2098432983500045934.post-41001922359809636312013-06-09T11:34:41.848-04:002013-06-09T11:34:41.848-04:00Jim, I know a few of these things. But you seem to...Jim, I know a few of these things. But you seem to have a really good handle on it. That was my impression from your remarks and graphs the other day. Your thoughts here only confirm it for me.<br /><br />I appreciate the insights.<br /><br />Just now I was reviewing Wikipedia's "Money Supply" <a href="http://en.wikipedia.org/wiki/Money_supply#Empirical_measures_in_the_United_States_Federal_Reserve_System" rel="nofollow">table</a> for Monday's post and noticed that they separate "demand deposits" from "other checkable deposits", as you do. And also, as you said, both are included in M1.<br /><br />I've looked at that table a dozen times, easy. But your comments helped me notice things I didn't catch before, and understand things better. Thank you.<br />The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-55953562127212995272013-06-08T14:06:11.300-04:002013-06-08T14:06:11.300-04:00Hi Art,
If you want to define the money used dail...Hi Art,<br /><br />If you want to define the money used daily for buying/selling things, then you should include currency. Also, since 1979 deposit institutions have offered checking accounts that pay interest - those accounts aren't counted in demand deposit accounts.<br /><br />M1 includes all of those funds and travelers checks as money that is most used for daily spending. M1 doesn't include money swept out of checking accounts that get little use. <br /><br />http://research.stlouisfed.org/fred2/graph/?g=jhy<br /><br />On a side note, it is interesting that demand deposits increased from about $250 Bn to $300 Bn from 1980 to 2008, then they jumped up to $950 Bn in the last 5 years. I wonder what that is about.jimnoreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-8265280233695369332013-06-08T13:47:12.277-04:002013-06-08T13:47:12.277-04:00The red line just churns as paychecks get deposite...The red line just churns as paychecks get deposited and then spent down to some piddling residual throughout the month.<br /><br />Blue line just gets bigger and bigger and bigger . . .Jazzbumpahttps://www.blogger.com/profile/07337490817307473659noreply@blogger.com