Except for the monetary base and currency, all of the narrow measures of money fell last month. Currency grew at a 1.7% annualized rate; total reserves continued to plunge, down 15.1% after April's 11.7% drop; and M1, which includes both currency and checkable deposits, fell 5.1%. The monetary base, which measures currency in the hands of the public plus reserves and currency held by banks, increased a paltry 0.6%.
Suggested citation: “Monetary Policy,” Federal Reserve Bank of Cleveland, Economic Trends, no. 96-06, pp. 02-04, 06.01.1996.