NOTE: THIS DATA FILE WILL CHANGE! To improve accessibility of data for all users, we will convert this file from a text format to an html table by the end of June 2024. Title: Velocity of M1 Money Stock Series ID: M1V 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 2024-01-01 Last Updated: 2024-04-25 8:03 AM CDT Notes: Calculated as the ratio of quarterly nominal GDP (GDP (https://fred.stlouisfed.org/series/GDP)) to the quarterly average of M1 money stock (M1SL (https://fred.stlouisfed.org/series/M1SL)) 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, demand deposits, and other liquid 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. Beginning May 2020, M1 consists of (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of depository institutions; (2) demand deposits at commercial banks (excluding those amounts held by depository institutions, the U.S. government, and foreign banks and official institutions) less cash items in the process of collection and Federal Reserve float; and (3) other liquid deposits, consisting of OCDs and savings deposits (including money market deposit accounts). Seasonally adjusted M1 is constructed by summing currency, demand deposits, and OCDs (before May 2020) or other liquid deposits (beginning May 2020), each seasonally adjusted separately. For more information on the H.6 release changes and the regulatory amendment that led to the creation of the other liquid deposits component and its inclusion in the M1 monetary aggregate, see the H.6 announcements (https://www.federalreserve.gov/feeds/h6.html) and Technical Q&As (https://www.federalreserve.gov/releases/h6/h6_technical_qa.htm) posted on December 17, 2020. 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, traveler’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 3.663 1959-04-01 3.719 1959-07-01 3.710 1959-10-01 3.769 1960-01-01 3.879 1960-04-01 3.876 1960-07-01 3.872 1960-10-01 3.836 1961-01-01 3.851 1961-04-01 3.897 1961-07-01 3.959 1961-10-01 4.013 1962-01-01 4.079 1962-04-01 4.095 1962-07-01 4.158 1962-10-01 4.158 1963-01-01 4.178 1963-04-01 4.194 1963-07-01 4.248 1963-10-01 4.269 1964-01-01 4.345 1964-04-01 4.372 1964-07-01 4.386 1964-10-01 4.363 1965-01-01 4.457 1965-04-01 4.508 1965-07-01 4.574 1965-10-01 4.627 1966-01-01 4.688 1966-04-01 4.692 1966-07-01 4.792 1966-10-01 4.858 1967-01-01 4.873 1967-04-01 4.834 1967-07-01 4.820 1967-10-01 4.832 1968-01-01 4.920 1968-04-01 4.970 1968-07-01 4.961 1968-10-01 4.944 1969-01-01 4.983 1969-04-01 5.022 1969-07-01 5.103 1969-10-01 5.102 1970-01-01 5.112 1970-04-01 5.152 1970-07-01 5.174 1970-10-01 5.095 1971-01-01 5.226 1971-04-01 5.212 1971-07-01 5.219 1971-10-01 5.226 1972-01-01 5.299 1972-04-01 5.365 1972-07-01 5.356 1972-10-01 5.383 1973-01-01 5.471 1973-04-01 5.550 1973-07-01 5.564 1973-10-01 5.657 1974-01-01 5.622 1974-04-01 5.714 1974-07-01 5.775 1974-10-01 5.851 1975-01-01 5.875 1975-04-01 5.915 1975-07-01 6.010 1975-10-01 6.151 1976-01-01 6.264 1976-04-01 6.266 1976-07-01 6.318 1976-10-01 6.364 1977-01-01 6.390 1977-04-01 6.479 1977-07-01 6.572 1977-10-01 6.586 1978-01-01 6.564 1978-04-01 6.780 1978-07-01 6.847 1978-10-01 6.971 1979-01-01 7.012 1979-04-01 6.997 1979-07-01 7.049 1979-10-01 7.147 1980-01-01 7.188 1980-04-01 7.249 1980-07-01 7.153 1980-10-01 7.293 1981-01-01 7.528 1981-04-01 7.428 1981-07-01 7.637 1981-10-01 7.592 1982-01-01 7.401 1982-04-01 7.452 1982-07-01 7.446 1982-10-01 7.235 1983-01-01 7.176 1983-04-01 7.171 1983-07-01 7.228 1983-10-01 7.309 1984-01-01 7.402 1984-04-01 7.462 1984-07-01 7.540 1984-10-01 7.576 1985-01-01 7.522 1985-04-01 7.457 1985-07-01 7.358 1985-10-01 7.247 1986-01-01 7.193 1986-04-01 6.980 1986-07-01 6.788 1986-10-01 6.575 1987-01-01 6.455 1987-04-01 6.457 1987-07-01 6.555 1987-10-01 6.649 1988-01-01 6.688 1988-04-01 6.717 1988-07-01 6.749 1988-10-01 6.879 1989-01-01 7.028 1989-04-01 7.233 1989-07-01 7.307 1989-10-01 7.283 1990-01-01 7.356 1990-04-01 7.391 1990-07-01 7.377 1990-10-01 7.303 1991-01-01 7.247 1991-04-01 7.212 1991-07-01 7.166 1991-10-01 7.058 1992-01-01 6.886 1992-04-01 6.814 1992-07-01 6.735 1992-10-01 6.584 1993-01-01 6.508 1993-04-01 6.406 1993-07-01 6.289 1993-10-01 6.250 1994-01-01 6.264 1994-04-01 6.339 1994-07-01 6.369 1994-10-01 6.479 1995-01-01 6.550 1995-04-01 6.614 1995-07-01 6.714 1995-10-01 6.860 1996-01-01 7.016 1996-04-01 7.180 1996-07-01 7.369 1996-10-01 7.623 1997-01-01 7.761 1997-04-01 8.002 1997-07-01 8.102 1997-10-01 8.196 1998-01-01 8.238 1998-04-01 8.326 1998-07-01 8.469 1998-10-01 8.511 1999-01-01 8.578 1999-04-01 8.647 1999-07-01 8.820 1999-10-01 8.902 2000-01-01 8.989 2000-04-01 9.251 2000-07-01 9.370 2000-10-01 9.546 2001-01-01 9.499 2001-04-01 9.459 2001-07-01 9.098 2001-10-01 9.086 2002-01-01 9.050 2002-04-01 9.150 2002-07-01 9.199 2002-10-01 9.132 2003-01-01 9.048 2003-04-01 8.932 2003-07-01 8.941 2003-10-01 9.048 2004-01-01 9.042 2004-04-01 9.065 2004-07-01 9.098 2004-10-01 9.138 2005-01-01 9.321 2005-04-01 9.445 2005-07-01 9.557 2005-10-01 9.686 2006-01-01 9.852 2006-04-01 9.957 2006-07-01 10.126 2006-10-01 10.254 2007-01-01 10.399 2007-04-01 10.469 2007-07-01 10.595 2007-10-01 10.703 2008-01-01 10.639 2008-04-01 10.645 2008-07-01 10.418 2008-10-01 9.548 2009-01-01 9.155 2009-04-01 8.827 2009-07-01 8.691 2009-10-01 8.698 2010-01-01 8.708 2010-04-01 8.742 2010-07-01 8.671 2010-10-01 8.434 2011-01-01 8.205 2011-04-01 8.044 2011-07-01 7.533 2011-10-01 7.339 2012-01-01 7.264 2012-04-01 7.183 2012-07-01 6.939 2012-10-01 6.728 2013-01-01 6.729 2013-04-01 6.648 2013-07-01 6.623 2013-10-01 6.492 2014-01-01 6.297 2014-04-01 6.274 2014-07-01 6.295 2014-10-01 6.159 2015-01-01 6.048 2015-04-01 6.099 2015-07-01 6.069 2015-10-01 6.003 2016-01-01 5.920 2016-04-01 5.801 2016-07-01 5.736 2016-10-01 5.705 2017-01-01 5.644 2017-04-01 5.558 2017-07-01 5.519 2017-10-01 5.540 2018-01-01 5.580 2018-04-01 5.630 2018-07-01 5.632 2018-10-01 5.606 2019-01-01 5.637 2019-04-01 5.628 2019-07-01 5.597 2019-10-01 5.525 2020-01-01 5.330 2020-04-01 1.588 2020-07-01 1.277 2020-10-01 1.252 2021-01-01 1.233 2021-04-01 1.214 2021-07-01 1.210 2021-10-01 1.218 2022-01-01 1.216 2022-04-01 1.236 2022-07-01 1.272 2022-10-01 1.323 2023-01-01 1.390 2023-04-01 1.457 2023-07-01 1.511 2023-10-01 1.551 2024-01-01 1.574