Discontinuance of M3

[fedsron2us]

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 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).

http://www.federalreserve.gov/releases/h6/discm3.htm

The Fed has been publishing these figures since 1959. Monetarists used to regard them as a key indicator of inflationary expectations. Why have they decided to quit now ? Some people obviously smell a whole sewerful of rats here.

[nashville_brook]

1. just a thought, but what else happens in March of next year??

does this have anything to do with the oil burse?

[don954]

2. simple, makes 3rd party inflation gauges harder to run

after all, if people dont know the true inflation rate, they wont panic!

[sweetheart]

3. Duplicate

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=104&topic_id=5338606&mesg_id=5338606