Monthly Archives: February 2022

CFS Monetary Measures for January 2022

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Today we release CFS monetary and financial measures for January 2022. CFS Divisia M4, which is the broadest and most important measure of money, grew by 5.6% in January 2022 on a year-over-year basis versus 5.0% in December.

For Monetary and Financial Data Release Report:
https://centerforfinancialstability.org/amfm/Divisia_Jan22.pdf

For more information about the CFS Divisia indices and the data in Excel:
https://centerforfinancialstability.org/amfm_data.php

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

1) ALLX DIVM
2) ECST T DIVMM4IY
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’

Money in The Wash Post

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Congratulations to David J. Lynch at The Washington Post for being the first in a major news outlet, as far as we are aware, to ask the question “why does the Fed ignore the money supply”?

The piece covers much ground, references Bill Barnett’s work as CFS director of Advances in Monetary and Financial Measurement (AMFM), and quotes Steve Hanke, CFS special counsellor and Johns Hopkins professor.

Yet, misconceptions exist. Lynch frames monetarists versus “all but the monetarists” and “conservative critics” versus others. He is correct. Sadly, this is the narrative.

However, CFS Divisia monetary aggregates and liability measures vividly illustrate how Fed policy transmits through the financial system and into the real economy. That’s it. They have been exceedingly helpful at analytically and dispassionately identifying trades and how the economy responds to policy.

CFS monetary data and optimal uses are vehemently non-partisan.

We look forward to any comments you might have.

To view the full article in the Washington Post:
https://www.washingtonpost.com/business/2022/02/06/federal-reserve-inflation-money-supply/