The surge in M-1, which consists of currency, checks and related liquid deposits, was in line with expectations.
M-1, consisting of currency, checking accounts and check-like deposits, remains far above the Fed's maximum growth objective of 8percentt and has grown by 17.7percentt in the latest quarter and 13.3percentt in the last year.
Wall Street was also concerned yesterday that the weekly money supply figure might be bloated, and after the close the Federal Reserve reported that M-1, which is currency, checks and checklike deposits, jumped a modest $2.7 billion.
While M-1, consisting of currency, checks and check-like deposits, remains far above its maximum growth target of 8percentt and has expanded at a 14.8percentt rate since the fourth quarter of last year, growth in broader money supply measures is very close to the 9percentt maximum set by the Fed.
During that same time, growth of the M2 money supply (includes currency, checking accounts, time-related deposits, savings deposits and non-institutional money-market funds) fell from over 10% to around 2%, and M1 (currency plus checking accounts) growth fell from over 10% to negative rates.
Gold coins and widely-exchangeable claims convertible into gold at a fixed weight (i.e., currency, checks, cards, etc). have served as objective money and a reliable measuring standard at least since 3000 B.C., and in the modern era (since 1700) they were crucial to a vast expansion of commerce, revolutionary growth of industrialization, and the ultimate triumph of free-market capitalism.
Analysts are divided on whether the Bank of Canada will seek to keep the currency in check by lowering interest rates at its next review of monetary policy on Jan . 20
Indonesia raised key interest rates to as much as 50percentt, risking a deepening recession to bolster its currency and check runaway inflation.
Much of the yen's weakening on Wednesday came from investors selling the yen on expectations that the Japanese government would be more active in keeping its currency in check.
