M3 Money Stock

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Futuo's picture
Futuo
Status: Martenson Brigade Member (Offline)
Joined: Apr 15 2008
Posts: 155
M3 Money Stock

I'm just wondering if anyone knows any way to track the M3 money supply. The Fed stopped publishing that particular statistic in 2006 - I won't speculate as to why that may have been advantageous to them *wink*. I found some speculative % change graphs on shadowstatistics.com, but does anyone know how accurate that may be, if there are exact numbers somewhere, etc? I find Chris's point in Chapter 9 that up through 1973 everything in America could be paid for with $1 trillion of money stock compelling, especially when compared with a full trillion in the last 4.5 months. However, as the chart shows, the data is "as of March, 2008". Any idea as to where he got that data? Is it the shadowstatistics.com speculation? I'd love to know how things have changed since the bailout and such.

Thanks!

fujisan's picture
fujisan
Status: Gold Member (Offline)
Joined: Nov 5 2008
Posts: 296
Re: M3 Money Stock

Here is an alternate source:

http://www.shadowstats.com/alternate_data

Chart of U.S. Money Supply Growth

Explanation of the methodology they use:

http://www.shadowstats.com/article/32

Quote:

 M3 consists of M2 plus institutional money funds, large-denomination time deposits, repurchase agreement liabilities and eurodollar holdings at foreign branches of U.S. banks. 


More than 70% of the non-M2 components of M3 are accounted for by institutional money funds and large time deposits. The Fed has continued reporting institutional money funds as a memorandum item in its H.6 report on Money Stock Measures. 

Large time deposits at commercial banks is reported regularly in the Fed's H.8 report on Assets and Liabilities of Commercial Banks. These numbers allow modeling of a good estimation of the large time deposit number used in M3 calculations. 

Representing less than 30% of non-M2 components of M3 and less than 10% of total M3, the repos and eurodollars are being modeled by SGS econometric models. They will be updated, along with large time deposits, as benchmarking information becomes available in the quarterly flow of funds accounts. Accordingly, published SGS M3 growth rates are subject to revision, as are the still-published M1 and M2 series as published by the Fed. Nonetheless, the bulk of the M3 estimation is solid and should allow the production of annual M3 growth estimates that are representative of Fed activity, as well as representative of what the Fed still likely follows with its own unpublished estimates of M3.

 

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