Every narrow money measure except currency fell in January. Currency grew 4.7%, which was slightly slower than its 1996 average rate of 5.7%. Unadjusted total reserves fell 19.4%, substantially more than last year's annual percentage loss of 11.4%. The monetary base declined 5.3% after rising 3.8% in 1996. The 4.5% drop in unadjusted M1 is in line with last year's 4.7% decrease.
Suggested citation: “Monetary Policy,” Federal Reserve Bank of Cleveland, Economic Trends, no. 97-02, pp. 02-04, 02.01.1997.