The Money Supply
For this assignment you will use the money supply data available on the Federal Reserve website (http://www.federalreserve.gov).
Although you need to focus on specific sections of the site for this assignment, you are encouraged to browse the website and become familiar with the other information available there.
To access the money supply data, follow the links below from the site’s home page:
Economic Research and Data > Statistical Releases and Historical Data > Money Stock Measures
After reviewing data on the money supply, complete the following assignment:
- From this week’s reading assignment, review the section “M1, M2, and M3.” In that section, locate the data that the text provides on the money supply. Update this data based on the Government’s most current data release.
- Find the trend in the growth rate of M1 and M2. What accounts for differences in the growth rate of each money supply measure?
- Summarize measurement issues in M1 and M2 identified by the Federal Reserve.
Your response should be 1-2 pages in length and include the updated data requested, a paragraph on M1 and M2 growth rates, and a paragraph on the measurement issues.
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