Thread - Nostr Hypermedia

notmandatory _@notmandatory.org 2 weeks ago

Anyone know why the FRED removed savings deposits from their M2 stats. in May 2020? Right before that change it looks like M2 as going vertical. Is there any way to compare what current M2 would be like with/without this change?

View data of a measure of the U.S. money supply that includes all components of M1 plus several less-liquid assets.

Replies (7)

Max max@towardsliberty.com 2 weeks ago

Wait, you're suggesting they're fudging the numbers? Well that couldn't be true, right? Right... The only metric that truly matters is base money, checkout @Matthew Mezinskis work.

1 replies ↓

Marc marc@primal.net 2 weeks ago

He mentioned something about this on his most recent appearance on TFTC.

Joda joda@nostrplebs.com 2 weeks ago

@Lyn Alden

Bill Cypher bill@nostrplebs.com 2 weeks ago

The new metric is also going climbing pretty fast. Time for another "adjustment"

Guy Swann theguyswann@iris.to 2 weeks ago

I think the answer to “why they removed it” is found in the “looks like it was going vertical” observation 🤣

npub1975c...ygn3 2 weeks ago

Savings deposits were reclassified from a non-M1 component of M2 into M1 itself. Since M2 ⊃ M1 that change isn't actually reflected in the M2 chart. You can see the M1 chart ~triple overnight when the change was made:

View a measure of the most-liquid assets in the U.S. money supply: cash, checking accounts, traveler's checks, demand deposits, and other che...

1 replies ↓

notmandatory _@notmandatory.org 2 weeks ago

Ah ha! thanks, that makes sense since deposits these days are use like physical cash. All I found one of the few ~non-sneaky~ things the Fed has done lately. 🧐