Comments on: The Amount of M1, M2, M3 and the Measures of the U.S. Money Supply

By: karl

karl — Tue, 17 Nov 2009 03:54:15 +0000

I am wondering if the us currency in other countries like Venezuela who have taken on the US dollar as their own currency. Is included in the M1 reports of the federal reserve.

By: BC

BC — Mon, 19 Oct 2009 18:14:08 +0000

I believe you meant to write that M1 in January 2005 was $1.366 Trillion. Great article though and thank you for the good information.

By: MLR

MLR — Tue, 25 Aug 2009 18:19:29 +0000

Pretend:
M1 = 3
M2 = M1 + 4 = 7
M3 = M2 + 9 = 16

Now, let’s pretend M1 goes up 2 and M2 goes up 3, but M3 goes down 6 ->
M1 = 5
M2 = M1 + 7 = 12
M3 = M2 + 3 = 15

Both M1 and M2 went up, but M3 went down.

Very simplified, but an easy way to wrap your head around how M1 and M2 can go up while M3 is going down.

By: MoneyEnergy

MoneyEnergy — Tue, 25 Aug 2009 18:05:32 +0000

Even the ShadowStats estimate doesn’t make sense to me, however. Perhaps I’m misreading it, but how can M3 be said to go down if M2 and M1 have increased (since M3 includes those).

By: MLR

MLR — Tue, 25 Aug 2009 07:13:58 +0000

Looking at the changing financial landscape, M3 in relation to debt has dropped quite a bit. And this appears to be moreso because the new forms of debt aren’t embodied in the measure.

That may be one reason, Weakonomist. If the data is not as informational as it once was, perhaps they thought it was a “distraction” of sorts.

By: Rose

Rose — Mon, 24 Aug 2009 19:39:18 +0000

im, rose…
thanks..your post is good..keep update friends…
drop EC
thanks before
Aceh Barat

By: the weakonomist

the weakonomist — Mon, 24 Aug 2009 18:26:00 +0000

Shadow Stats does an M3 estimate, but I haven’t figured out yet why The Fed pulled the plug on that data http://www.shadowstats.com/alternate_data/money-supply