Monday, January 10, 2011

Blog Assignment #2

1. This information could be important to a variety of people. The most obvious would be people who work within the Federal Reserve, those within the Treasury and also policy makers as they make choices on the economy. As well, it might be helpful for companies to know how much money the American public has to spend on there goods and services.

2. Information on the M1 money supply is both collected weekly and monthly by the Federal Reserve. The money supply is also forecasted by different financial firms and agencies who are interested in the potential gains and losses.

3. In the final week of December, the M1 money supply was reported to have a weekly average of 1859.7 billion dollars (seasonally adjusted). This encompasses all currency outside of the Federal Reserve, the U.S. Treasury, and other depository institutions. As well, it includes any non-bank issued traveler’s checks, demand deposits, and other checkable deposits. This is a high point for the year, although not the peak. The money supply has been steadily increasing since the beginning of 2009 when it began at 1583.5 billion dollars.

Statistics and information from:

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