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NOTES

Source: U.S. Bureau of Labor Statistics  

Release: Employment Situation  

Units:  Thousands of Persons, Not Seasonally Adjusted

Frequency:  Monthly

Notes:

Civilian noninstitutional population is defined as persons 16 years of age and older residing in the 50 states and the District of Columbia, who are not inmates of institutions (e.g., penal and mental facilities, homes for the aged), and who are not on active duty in the Armed Forces.

The series comes from the 'Current Population Survey (Household Survey)'

The source code is: LNU00000000

Suggested Citation:

U.S. Bureau of Labor Statistics, Population Level [CNP16OV], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/CNP16OV, June 6, 2024.

Source: U.S. Bureau of Economic Analysis  

Release: Gross Domestic Product  

Units:  Index 2017=100, Seasonally Adjusted

Frequency:  Quarterly

Notes:

BEA Account Code: A191RD

The number of decimal places reported varies over time. A Guide to the National Income and Product Accounts of the United States (NIPA).

Suggested Citation:

U.S. Bureau of Economic Analysis, Gross Domestic Product: Implicit Price Deflator [GDPDEF], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/GDPDEF, June 6, 2024.

Source: Federal Reserve Bank of St. Louis  

Release: Money Zero Maturity (MZM)  

Units:  Billions of Dollars, Seasonally Adjusted

Frequency:  Monthly

Notes:

This series has been discontinued and will no longer be updated. The institutional money market funds component (IMFSL) used to calculate this series has been discontinued by the Board of Governors and is no longer available in the H.6 statistical release, Money Stock Measures.

For further information about the changes to the H.6 statistical release, please see the announcements provided by the source.

M2 less small-denomination time deposits plus institutional money market funds.
Money Zero Maturity is calculated by the Federal Reserve Bank of St. Louis.

Suggested Citation:

Federal Reserve Bank of St. Louis, MZM Money Stock (DISCONTINUED) [MZMSL], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/MZMSL, June 6, 2024.

Source: Federal Reserve Bank of St. Louis  

Release: Money Velocity

Units:  Ratio, Seasonally Adjusted

Frequency:  Quarterly

Notes:

This series has been discontinued and will no longer be updated. The institutional money market funds component (IMFSL) used to calculate MZM has been discontinued by the Board of Governors and is no longer available in the H.6 statistical release, Money Stock Measures. For further information about the changes to the H.6 statistical release, please see the announcements provided by the source.

Calculated as the ratio of quarterly nominal GDP (GDP) to the quarterly average of MZM money stock (MZMSL).

The velocity of money is the frequency at which one unit of currency is used to purchase domestically- produced goods and services within a given time period. In other words, it is the number of times one dollar is spent to buy goods and services per unit of time. If the velocity of money is increasing, then more transactions are occurring between individuals in an economy.
The frequency of currency exchange can be used to determine the velocity of a given component of the money supply, providing some insight into whether consumers and businesses are saving or spending their money. There are several components of the money supply,: M1, M2, and MZM (M3 is no longer tracked by the Federal Reserve); these components are arranged on a spectrum of narrowest to broadest. Consider M1, the narrowest component. M1 is the money supply of currency in circulation (notes and coins, traveler’s checks [non-bank issuers], demand deposits, and checkable deposits). A decreasing velocity of M1 might indicate fewer short- term consumption transactions are taking place. We can think of shorter- term transactions as consumption we might make on an everyday basis.

The broader M2 component includes M1 in addition to saving deposits, certificates of deposit (less than $100,000), and money market deposits for individuals. Comparing the velocities of M1 and M2 provides some insight into how quickly the economy is spending and how quickly it is saving.

MZM (money with zero maturity) is the broadest component and consists of the supply of financial assets redeemable at par on demand: notes and coins in circulation, traveler’s checks (non-bank issuers), demand deposits, other checkable deposits, savings deposits, and all money market funds. The velocity of MZM helps determine how often financial assets are switching hands within the economy.

Suggested Citation:

Federal Reserve Bank of St. Louis, Velocity of MZM Money Stock (DISCONTINUED) [MZMV], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/MZMV, June 6, 2024.

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