The Federal Reserve Board issued its revised money stock measures yesterday with M1-A, a slightly altered version of the old M-1, rising $1.6 billion in the week ended Jan. 30.
M1-A includes currency in circulation plus demand deposits at commercial banks except those belonging to other domestic banks, the U.S. government, and foreign banks and official institutions. In the Jan. 30 week, M1-A reached $373.1 billion, about the same level as in the last week of December but modestly higher than the December average of $371.5 billion.
The new M1-B rose $1.4 billion in the latest week to $389.3 billion. M1-B includes M1-A plus other checkable deposits at banks and thrift institutions.
The old M-2 has been expanded and now will be available only on a monthly basis, not weekly as in the past. M-2 now includes M1-B as well as money held by banks under overnight repurchase agreements (RPs) and overnight Eurodollar deposits, money market mutual fund shares, and savings and small-time deposits (less than $100,000) at banks and thrift institutions.
In December the new M-2 averaged $1.524 trillion, up from $1.514 trillion in November.
M-3 also has been changed. It now includes M-2 plus large-time deposits and term RPs at banks and thrift institutions. In December it stood at $1.772 trillion, up from $1.762 trillion the month before.
Due to some statistical problems, weekly data on money market mutual fund shares is not yet available but will be within two or three weeks, a Federal Reserve spokesman said. Data on overnight RPs and Eurodollars showed their level at $22 billion in the week ended Jan. 30, the same as at the end of December and up only $1.2 billion since December 1978.
The new series on money market mutual fund shares underscored the enormous growth in this type of asset in the last year. The amount of these shares soared from only $1o.3 billion in December 1978 to $43.6 billion in December 1979. The exclusion of these shares from previous measures of money was a major factor in the Fed's decision to revise its money statistics.
In addition to the new M figures, the Fed introduced a catch-all measure if liquidity called L, which includes M-3 and other liquid assets such as nonbank public's holdings of U.S. savings bonds, short-term Treasury securities, commercial paper and bankers acceptances, with the holdings of these items by money market mutual funds excluded to avoid double counting. As of November, L averaged $2.125 trillion.
In the 12 months ended in December, M1-A rose 5.7 percent, M1-B rose 7.7 percent, M-2 rose 8.8 percent and M-3 rose 9.2 percent, the Fed said. In the latest 13-week period, M1-A was rising at 5.1 percent annual rate and M1-B at a 5.6 percent rate.