Title: Velocity of MZM Money Stock Series ID: MZMV Source: Federal Reserve Bank of St. Louis Release: Money Velocity (Not a Press Release) Seasonal Adjustment: Seasonally Adjusted Frequency: Quarterly Units: Ratio Date Range: 1959-01-01 to 2015-01-01 Last Updated: 2015-04-29 8:46 AM CDT Notes: Calculated as the ratio of quarterly nominal GDP (http://research.stlouisfed.org/fred2/series/GDP) to the quarterly average of MZM money stock (http://research.stlouisfed.org/fred2/series/MZMSL). The velocity of money is the frequency at which one unit of currency is used to purchase domestically- produced goods and services within a given time period. In other words, it is the number of times one dollar is spent to buy goods and services per unit of time. If the velocity of money is increasing, then more transactions are occurring between individuals in an economy. The frequency of currency exchange can be used to determine the velocity of a given component of the money supply, providing some insight into whether consumers and businesses are saving or spending their money. There are several components of the money supply,: M1, M2, and MZM (M3 is no longer tracked by the Federal Reserve); these components are arranged on a spectrum of narrowest to broadest. Consider M1, the narrowest component. M1 is the money supply of currency in circulation (notes and coins, travelerâ€™s checks [non-bank issuers], demand deposits, and checkable deposits). A decreasing velocity of M1 might indicate fewer short- term consumption transactions are taking place. We can think of shorter- term transactions as consumption we might make on an everyday basis. The broader M2 component includes M1 in addition to saving deposits, certificates of deposit (less than \$100,000), and money market deposits for individuals. Comparing the velocities of M1 and M2 provides some insight into how quickly the economy is spending and how quickly it is saving. MZM (money with zero maturity) is the broadest component and consists of the supply of financial assets redeemable at par on demand: notes and coins in circulation, travelerâ€™s checks (non-bank issuers), demand deposits, other checkable deposits, savings deposits, and all money market funds. The velocity of MZM helps determine how often financial assets are switching hands within the economy. DATE VALUE 1959-01-01 1.851 1959-04-01 1.872 1959-07-01 1.850 1959-10-01 1.855 1960-01-01 1.892 1960-04-01 1.877 1960-07-01 1.858 1960-10-01 1.815 1961-01-01 1.800 1961-04-01 1.809 1961-07-01 1.818 1961-10-01 1.827 1962-01-01 1.839 1962-04-01 1.831 1962-07-01 1.828 1962-10-01 1.804 1963-01-01 1.795 1963-04-01 1.787 1963-07-01 1.793 1963-10-01 1.791 1964-01-01 1.807 1964-04-01 1.804 1964-07-01 1.798 1964-10-01 1.778 1965-01-01 1.799 1965-04-01 1.805 1965-07-01 1.817 1965-10-01 1.834 1966-01-01 1.864 1966-04-01 1.891 1966-07-01 1.933 1966-10-01 1.968 1967-01-01 1.984 1967-04-01 1.969 1967-07-01 1.968 1967-10-01 1.982 1968-01-01 2.031 1968-04-01 2.069 1968-07-01 2.083 1968-10-01 2.093 1969-01-01 2.127 1969-04-01 2.158 1969-07-01 2.210 1969-10-01 2.229 1970-01-01 2.270 1970-04-01 2.337 1970-07-01 2.350 1970-10-01 2.310 1971-01-01 2.353 1971-04-01 2.331 1971-07-01 2.319 1971-10-01 2.304 1972-01-01 2.331 1972-04-01 2.357 1972-07-01 2.344 1972-10-01 2.354 1973-01-01 2.402 1973-04-01 2.444 1973-07-01 2.461 1973-10-01 2.520 1974-01-01 2.519 1974-04-01 2.566 1974-07-01 2.593 1974-10-01 2.623 1975-01-01 2.604 1975-04-01 2.582 1975-07-01 2.591 1975-10-01 2.620 1976-01-01 2.625 1976-04-01 2.596 1976-07-01 2.592 1976-10-01 2.574 1977-01-01 2.566 1977-04-01 2.601 1977-07-01 2.633 1977-10-01 2.641 1978-01-01 2.645 1978-04-01 2.757 1978-07-01 2.820 1978-10-01 2.914 1979-01-01 3.012 1979-04-01 3.065 1979-07-01 3.096 1979-10-01 3.203 1980-01-01 3.284 1980-04-01 3.348 1980-07-01 3.217 1980-10-01 3.330 1981-01-01 3.549 1981-04-01 3.473 1981-07-01 3.527 1981-10-01 3.445 1982-01-01 3.341 1982-04-01 3.353 1982-07-01 3.315 1982-10-01 3.174 1983-01-01 2.729 1983-04-01 2.640 1983-07-01 2.688 1983-10-01 2.754 1984-01-01 2.795 1984-04-01 2.813 1984-07-01 2.872 1984-10-01 2.841 1985-01-01 2.765 1985-04-01 2.734 1985-07-01 2.698 1985-10-01 2.674 1986-01-01 2.661 1986-04-01 2.569 1986-07-01 2.490 1986-10-01 2.414 1987-01-01 2.384 1987-04-01 2.395 1987-07-01 2.436 1987-10-01 2.498 1988-01-01 2.513 1988-04-01 2.538 1988-07-01 2.579 1988-10-01 2.641 1989-01-01 2.720 1989-04-01 2.797 1989-07-01 2.786 1989-10-01 2.741 1990-01-01 2.745 1990-04-01 2.753 1990-07-01 2.735 1990-10-01 2.694 1991-01-01 2.642 1991-04-01 2.602 1991-07-01 2.583 1991-10-01 2.539 1992-01-01 2.475 1992-04-01 2.451 1992-07-01 2.427 1992-10-01 2.418 1993-01-01 2.424 1993-04-01 2.417 1993-07-01 2.411 1993-10-01 2.421 1994-01-01 2.442 1994-04-01 2.478 1994-07-01 2.517 1994-10-01 2.576 1995-01-01 2.631 1995-04-01 2.650 1995-07-01 2.629 1995-10-01 2.629 1996-01-01 2.611 1996-04-01 2.618 1996-07-01 2.609 1996-10-01 2.610 1997-01-01 2.596 1997-04-01 2.601 1997-07-01 2.584 1997-10-01 2.553 1998-01-01 2.515 1998-04-01 2.465 1998-07-01 2.432 1998-10-01 2.373 1999-01-01 2.334 1999-04-01 2.306 1999-07-01 2.301 1999-10-01 2.306 2000-01-01 2.282 2000-04-01 2.299 2000-07-01 2.274 2000-10-01 2.253 2001-01-01 2.157 2001-04-01 2.077 2001-07-01 2.000 2001-10-01 1.912 2002-01-01 1.884 2002-04-01 1.876 2002-07-01 1.861 2002-10-01 1.826 2003-01-01 1.813 2003-04-01 1.811 2003-07-01 1.805 2003-10-01 1.846 2004-01-01 1.864 2004-04-01 1.852 2004-07-01 1.868 2004-10-01 1.887 2005-01-01 1.928 2005-04-01 1.951 2005-07-01 1.962 2005-10-01 1.964 2006-01-01 1.983 2006-04-01 1.990 2006-07-01 1.980 2006-10-01 1.963 2007-01-01 1.955 2007-04-01 1.931 2007-07-01 1.884 2007-10-01 1.823 2008-01-01 1.750 2008-04-01 1.706 2008-07-01 1.690 2008-10-01 1.619 2009-01-01 1.529 2009-04-01 1.495 2009-07-01 1.496 2009-10-01 1.522 2010-01-01 1.549 2010-04-01 1.580 2010-07-01 1.578 2010-10-01 1.568 2011-01-01 1.555 2011-04-01 1.539 2011-07-01 1.498 2011-10-01 1.492 2012-01-01 1.483 2012-04-01 1.474 2012-07-01 1.457 2012-10-01 1.431 2013-01-01 1.421 2013-04-01 1.414 2013-07-01 1.411 2013-10-01 1.403 2014-01-01 1.383 2014-04-01 1.388 2014-07-01 1.390 2014-10-01 1.378 2015-01-01 1.353