6 ms·
That's probably because it's not true. You can see the definition of M1 changed at the exact time that chart shows a spike. https://www.federalreserve.gov/rele
by walls 4y ago
That's probably because it's not true. You can see the definition of M1 changed at the exact time that chart shows a spike.
https://www.federalreserve.gov/releases/h6/current/default.htm https://www.federalreserve.gov/releases/h6/current/default.h...
- O__________O 4y agoWhat exactly was the change in definitions and is it possible to account for the change or is information missing?
- walls 4y agoSeems like this is probably it: https://fredblog.stlouisfed.org/2021/05/savings-are-now-more-liquid-and-part-of-m1-money/ https://fredblog.stlouisfed.org/2021/05/savings-are-now-more...
- dublinben 4y agoAccording to Investopedia, "in May 2020, the definition of M1 changed to include savings accounts given the increased liquidity of such accounts." If you look at M2, which already added these in, the increase looks much smaller.[1] [0]https://www.investopedia.com/terms/m/m1.asp https://www.investopedia.com/terms/m/m1.asp [1]https://fred.stlouisfed.org/series/M2NS https://fred.stlouisfed.org/series/M2NS