Acceleration of Money Growth…

Today’s CFS Divisia M4 release highlights a meaningful acceleration of growth in monetary and financial aggregates.

A steady advance of CFS monetary data since the beginning of the year suggests either the economy is springing back to life, inflation is moving higher, or some combination of the two.

CFS Divisia M4 – the broadest and most important measure of money – grew by 5.8% in October 2016 on a year-over-year basis versus 5.4% in September and 4.0% at the beginning of the year.

Importantly, growth in the narrow aggregate CFS Divisia M2 advanced by a stunning 7.9% on a year-over-year basis in October.

Regulatory and global macro cross currents are reshaping the financial system. The impact of these broad changes readily explains the divergence between the broad and narrow aggregates.

CFS Divisia indices can be found on our website at Broad aggregates are available in spreadsheet, tabular and chart form. Narrow aggregates can be found in spreadsheet form.

For Monetary and Financial Data Release Report:

Bloomberg terminal users can access our monetary and financial statistics by any of the four options:

3) {ECST} –> ‘Monetary Sector’ –> ‘Money Supply’ –> Change Source in top right to ‘Center for Financial Stability’
4) {ECST S US MONEY SUPPLY} –> From source list on left, select ‘Center for Financial Stability’