January 26, 2009

These two charts have offset each other. Prices are flat because of this.

My explanation for the fall in the M1 multiplier is the decision of banks to hold money as excess reserves with the Federal Reserve System.

The latest versions of these graphs appear in my department, Federal Reserve Charts.

First, M1. End date: January 12, 2009.

Second, the M1 money multiplier. End date: January 14, 2009.