THE END OF AN ERA

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For ten years now we have religiously brought you the Money Supply figures. We regret that we will be unable to do so. Not because we are lazy, but because the Fed has announced the Discontinuance of M3 reporting. On March 23, 2006, the Board of Governors of the Federal Reserve System will cease publication of the M3 monetary aggregate. The Board will also cease publishing the following list of components: large-denomination time deposits, repurchase agreements (RPs), and Eurodollars. The Board will continue to publish institutional money market mutual funds as a memorandum item in this release. Measures of large-denomination time deposits will continue to be published by the Board in the Flow of Funds Accounts (Z.1 release) on a quarterly basis and in the H.8 release on a weekly basis (for commercial banks). So much for transparency. I suspect the growth will be horrendous.

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