The official measures of the money stock in the United States currently published by the Board of Governors of the Federal Reserve System start with January, 1959. The following estimates of Currency, Demand Deposits and M1 (not seasonally adjusted and seasonally adjusted) attempt to measure a consistent series on these two concepts back to January, 1947 and January, 1948 respectively.

The methods used to construct these two series can be found in R. H. Rasche, "M1 - Velocity and Money Demand Functions: Do Stable Relationships Exist?", Carnegie-Rochester Conference Series on Public Policy, 27, Autumn, 1987, Appendix A, pp. 70-71 and in R. H. Rasche, "Demand Functions for Measures of U.S. Money and Debt", in P. Hooper, et. al. (eds.) Financial Sectors in Open Economies: Empirical Analysis and Policy Issues, Board of Governors of the Federal Reserve System, 1990, Appendix, p. 159. as follows:


 Date      Currency     Demand        M1       Currency    Demand        M1
             NSA       Deposits      NSA          SA      Deposits       SA
                          NSA                                SA

1947:01     26.8860     81.7000    108.5860     26.8860    79.3985    106.2846
1947:02     26.6847     79.8000    106.4847     26.8860    79.5126    106.3987
1947:03     26.6847     79.4000    106.0847     26.8860    80.1662    107.0523
1947:04     26.5840     79.2000    105.7840     26.7854    80.9238    107.7092
1947:05     26.5840     79.9000    106.4840     26.7854    81.5286    108.3140
1947:06     26.5840     81.0000    107.5840     26.7854    81.9585    108.7439
1947:07     26.5840     81.4000    107.9840     26.6847    82.1670    108.8517
1947:08     26.5840     82.0000    108.5840     26.6847    82.5754    109.2601
1947:09     26.9867     83.0000    109.9867     26.8860    82.8080    109.6941
1947:10     26.8860     83.4000    110.2860     26.6847    82.9201    109.6048
1947:11     26.8860     84.3000    111.1860     26.6847    83.3398    110.0245
1947:12     26.9867     85.6000    112.5867     26.5840    83.2942    109.8782
1948:01     26.5840     86.0000    112.5840     26.5840    83.5977    110.1817
1948:02     26.3826     83.7000    110.0826     26.4833    83.3160    109.7993
1948:03     26.2819     82.2000    108.4819     26.3826    82.8714    109.2540
1948:04     26.0805     81.0000    107.0805     26.2819    82.7254    109.0073
1948:05     25.9798     80.9000    106.8798     26.1812    82.4336    108.6148
1948:06     26.0805     81.5000    107.5805     26.1812    82.4588    108.6400
1948:07     26.1812     81.8000    107.9812     26.1812    82.6630    108.8442
1948:08     26.1812     82.1000    108.2812     26.1812    82.6754    108.8566
1948:09     26.2819     82.7000    108.9819     26.1812    82.7000    108.8812
1948:10     26.3826     83.1000    109.4826     26.1812    82.6202    108.8014
1948:11     26.3826     83.3000    109.6826     26.1812    82.4362    108.6175
1948:12     26.3826     84.6000    110.9826     25.9798    82.3913    108.3711
1949:01     25.8791     84.5000    110.3791     25.8791    82.0994    107.9785
1949:02     25.6777     82.4000    108.0777     25.8791    82.0162    107.8954
1949:03     25.6777     81.4000    107.0777     25.8791    82.0711    107.9502
1949:04     25.6777     80.5000    106.1777     25.8791    82.0333    107.9124
1949:05     25.6777     80.7000    106.3777     25.8791    82.2334    108.1126
1949:06     25.5770     81.3000    106.8770     25.7784    82.1628    107.9412
1949:07     25.6777     81.2000    106.8777     25.6777    82.1586    107.8364
1949:08     25.5770     81.4000    106.9770     25.6777    82.0711    107.7488
1949:09     25.5770     82.0000    107.5770     25.4763    82.0959    107.5722
1949:10     25.6777     82.5000    108.1777     25.4763    82.1162    107.5926
1949:11     25.5770     83.1000    108.6770     25.3756    82.3323    107.7079
1949:12     25.6777     84.9000    110.5777     25.2749    82.5950    107.8699
1950:01     25.2749     85.4000    110.6749     25.2749    82.9984    108.2733
1950:02     25.1742     83.9000    109.0742     25.2749    83.4200    108.6949
1950:03     25.2749     83.3000    108.5749     25.3756    83.7798    109.1554
1950:04     25.2749     82.9000    108.1749     25.4763    84.4351    109.9115
1950:05     25.1742     83.4000    108.5742     25.3756    84.9355    110.3112
1950:06     25.0735     84.5000    109.5735     25.2749    85.4602    110.7351
1950:07     25.1742     85.0000    110.1742     25.1742    86.0564    111.2307
1950:08     25.0735     85.8000    110.8735     25.0735    86.5686    111.6421
1950:09     25.1742     86.6000    111.7742     25.0735    86.7922    111.8657
1950:10     25.2749     87.7000    112.9749     25.0735    87.3153    112.3889
1950:11     25.3756     88.3000    113.6756     25.0735    87.4343    112.5078
1950:12     25.5770     89.9000    115.4770     25.1742    87.7824    112.9566
1951:01     25.1742     91.0000    116.1742     25.1742    88.3037    113.4779
1951:02     25.1742     89.0000    114.1742     25.2749    88.5189    113.7938
1951:03     25.1742     88.8000    113.9742     25.3756    88.8962    114.2718
1951:04     25.1742     87.5000    112.6742     25.3756    89.0384    114.4141
1951:05     25.2749     87.7000    112.9749     25.4763    89.2385    114.7149
1951:06     25.4763     88.9000    114.3763     25.5770    89.6696    115.2467
1951:07     25.7784     88.4000    114.1784     25.7784    89.8428    115.6213
1951:08     25.8791     89.2000    115.0791     25.8791    90.2584    116.1375
1951:09     26.0805     90.6000    116.6805     25.9798    90.9851    116.9649
1951:10     26.2819     91.7000    117.9819     26.1812    91.6036    117.7848
1951:11     26.4833     93.5000    119.9833     26.1812    92.5360    118.7173
1951:12     26.7854     95.7000    122.4854     26.2819    93.0952    119.3771
1952:01     26.3826     96.5000    122.8826     26.3826    93.5085    119.8911
1952:02     26.2819     94.5000    120.7819     26.4833    93.8250    120.3083
1952:03     26.3826     93.9000    120.2826     26.5840    93.9964    120.5804
1952:04     26.3826     92.6000    118.9826     26.5840    94.0453    120.6293
1952:05     26.4833     92.9000    119.3833     26.6847    94.4419    121.1266
1952:06     26.6847     94.2000    120.8847     26.8860    94.8749    121.7610
1952:07     26.8860     93.4000    120.2860     26.8860    95.0385    121.9246
1952:08     26.9867     93.9000    120.8867     26.9867    95.3460    122.3328
1952:09     26.9867     95.4000    122.3867     27.0874    95.8823    122.9697
1952:10     27.1881     96.2000    123.3881     27.1881    96.2000    123.3881
1952:11     27.6916     97.4000    125.0916     27.3895    96.4346    123.8242
1952:12     27.9937     99.5000    127.4937     27.4902    96.6985    124.1888
1953:01     27.5909     99.6000    127.1909     27.5909    96.5086    124.0996
1953:02     27.4902     97.3000    124.7902     27.6916    96.4312    124.1229
1953:03     27.5909     96.8000    124.3909     27.7923    96.8965    124.6888
1953:04     27.5909     95.8000    123.3909     27.8930    97.1506    125.0437
1953:05     27.6916     95.7000    123.3916     27.8930    97.1470    125.0401
1953:06     27.7923     96.6000    124.3923     27.8930    97.1790    125.0720
1953:07     27.9937     95.7000    123.6937     27.9937    97.2435    125.2373
1953:08     27.9937     95.7000    123.6937     27.9937    97.3400    125.3337
1953:09     28.0944     96.5000    124.5944     27.9937    97.2720    125.2657
1953:10     28.0944     97.4000    125.4944     27.9937    97.4000    125.3937
1953:11     28.1951     98.3000    126.4951     27.9937    97.4309    125.4247
1953:12     28.3965    100.4000    128.7965     27.8930    97.6943    125.5873
1954:01     27.8930    101.1000    128.9930     27.8930    97.9104    125.8034
1954:02     27.6916     98.8000    126.4916     27.8930    98.0273    125.9204
1954:03     27.5909     97.9000    125.4909     27.7923    98.0930    125.8854
1954:04     27.5909     96.3000    123.8909     27.7923    97.4579    125.2502
1954:05     27.5909     97.2000    124.7909     27.7923    98.5513    126.3437
1954:06     27.5909     98.1000    125.6909     27.6916    98.7758    126.4675
1954:07     27.6916     97.8000    125.4916     27.6916    99.2481    126.9398
1954:08     27.5909     98.0000    125.5909     27.6916    99.6413    127.3330
1954:09     27.6916     99.1000    126.7916     27.5909    99.9692    127.5602
1954:10     27.7923    100.4000    128.1923     27.5909   100.5932    128.1842
1954:11     27.8930    101.9000    129.7930     27.5909   101.2232    128.8142
1954:12     28.0944    104.2000    132.2944     27.5909   101.4909    129.0819
1955:01     27.5909    105.5000    133.0909     27.5909   102.2091    129.8001
1955:02     27.3895    103.8000    131.1895     27.6916   102.9293    130.6210
1955:03     27.4902    102.3000    129.7902     27.6916   102.4933    130.1850
1955:04     27.4902    102.0000    129.4902     27.6916   102.7734    130.4651
1955:05     27.5909    101.9000    129.4909     27.7923   103.4468    131.2392
1955:06     27.6916    102.6000    130.2916     27.7923   103.2769    131.0692
1955:07     27.8930    102.2000    130.0930     27.8930   103.6503    131.5434
1955:08     27.8930    101.8000    129.6930     27.8930   103.4434    131.3365
1955:09     27.9937    102.9000    130.8937     27.8930   103.7703    131.6634
1955:10     28.0944    103.7000    131.7944     27.9937   103.8934    131.8872
1955:11     28.2958    104.2000    132.4958     27.9937   103.6194    131.6132
1955:12     28.5979    106.7000    135.2979     27.9937   103.9889    131.9826
1956:01     28.0944    107.7000    135.7944     28.0944   104.3101    132.4046
1956:02     27.7923    104.9000    132.6923     28.0944   104.2226    132.3170
1956:03     27.8930    104.0000    131.8930     28.0944   104.2902    132.3846
1956:04     27.8930    104.0000    131.8930     28.0944   104.5804    132.6749
1956:05     27.8930    102.8000    130.6930     28.0944   104.3473    132.4417
1956:06     27.9937    103.8000    131.7937     28.0944   104.5739    132.6683
1956:07     28.2958    103.0000    131.2958     28.1951   104.4507    132.6458
1956:08     28.1951    102.5000    130.6951     28.1951   104.2405    132.4357
1956:09     28.2958    103.8000    132.0958     28.1951   104.6706    132.8658
1956:10     28.3965    104.5000    132.8965     28.1951   104.6935    132.8886
1956:11     28.5979    105.6000    134.1979     28.2958   104.9224    133.2183
1956:12     29.0007    108.0000    137.0007     28.3965   105.2878    133.6844
1957:01     28.3965    108.6000    136.9965     28.3965   105.2092    133.6058
1957:02     28.0944    105.8000    133.8944     28.3965   105.1224    133.5189
1957:03     28.0944    104.7000    132.7944     28.3965   105.1838    133.5803
1957:04     28.1951    104.6000    132.7951     28.3965   105.1805    133.5771
1957:05     28.1951    103.7000    131.8951     28.3965   105.2477    133.6443
1957:06     28.3965    104.2000    132.5965     28.4972   105.0707    133.5680
1957:07     28.5979    103.7000    132.2979     28.4972   105.1510    133.6482
1957:08     28.4972    103.7000    132.1972     28.4972   105.2477    133.7450
1957:09     28.5979    104.2000    132.7979     28.4972   104.8772    133.3745
1957:10     28.5979    104.4000    132.9979     28.4972   104.6902    133.1875
1957:11     28.7993    105.1000    133.8993     28.4972   104.5193    133.0165
1957:12     29.1014    106.9000    136.0014     28.4972   104.1887    132.6860
1958:01     28.3965    107.1000    135.4965     28.4972   103.8075    132.3048
1958:02     28.0944    105.0000    133.0944     28.3965   104.4193    132.8159
1958:03     28.0944    103.9000    131.9944     28.3965   104.7706    133.1672
1958:04     28.1951    104.9000    133.0951     28.3965   105.1903    133.5868
1958:05     28.2958    104.1000    132.3958     28.4972   105.6479    134.1452
1958:06     28.4972    105.6000    134.0972     28.4972   106.5679    135.0651
1958:07     28.6986    105.0000    133.6986     28.5979   106.4516    135.0495
1958:08     28.6986    105.7000    134.3986     28.5979   107.1519    135.7498
1958:09     28.6986    106.9000    135.5986     28.6986   107.5778    136.2764
1958:10     28.7993    108.0000    136.7993     28.6986   108.0968    136.7955
1958:11     29.0007    109.7000    138.7007     28.6986   108.9247    137.6233
1958:12     29.4035    112.0000    141.4035     28.7993   109.1878    137.9872

Estimation of Current Concepts of M2 and M3, 1948-58

The official estimates of the current measures of M2 and M3 are available beginning with January, 1959. the current M2 and M3 measures are approximately equal to the old M3 and M5 concepts. The major differences are (1) the current M1 component differs from the old M1 component, (2) the current M2 includes an adjustment to eliminate double counting of transactions deposits, and (3) the current M3 indicates a small amount of large time deposits outstanding at the beginning of 1959, while the old M3 and M5 measures are equal in value at that time.

The estimation of M2 and M3 series for the period 1948-58 that are comparable to the current estimates begins with the construction of a series for the M1 component over the 1948-58 period that is consistent with current M1 concepts. The construction of these data are described in my paper "M1 Velocity"; the only difference between the data described there and the M1 data used here is that the present study applies no shift adjustment to the checkable deposit component of M1.

Data on time deposits at commercial banks and nonbank financial institutions are added to the M1 measure to obtain the basic estimates for M2 and M3. (The particular series usedare "Time Deposits Adjusted" in table 1.1 and "Time Deposits at Nonbank Financial Institutions" in table 1.2 of Board of Governors of the Federal Reserve System, Banking and Monetary Statistics: 1941- 1970) (Board of Governors, 1976)) The resulting time series is approximately 1.6 percent larger thatn the current M2 estimates at the beginning of 1959 and approximately 0.8 percent larger than the current M3 estimates at the beginning of 1959. To adjust for this discrepancy, these data are chained to the current estimates of M2 and M3. The constructed sereis for M2 over the 1948-58 period was estimated to be .984 times the corresponding basic estimates; the constructed series for M3 over the 1948-58 period is estimated to be .991935 times the corresponding basic estimates.

 Date         M2          M3
              SA          SA

1948:01    171.2919    172.6660
1948:02    171.2106    172.5841
1948:03    170.8700    172.2408
1948:04    170.7254    172.0950
1948:05    170.5355    171.9036
1948:06    170.7576    172.1275
1948:07    171.1563    172.5294
1948:08    171.4644    172.8399
1948:09    171.6858    173.0632
1948:10    171.7058    173.0832
1948:11    171.8202    173.1986
1948:12    171.6759    173.0532
1949:01    171.5846    172.9611
1949:02    171.7985    173.1767
1949:03    172.0498    173.4300
1949:04    172.3084    173.6907
1949:05    172.8017    174.1879
1949:06    172.9286    174.3158
1949:07    173.0224    174.4104
1949:08    173.1333    174.5222
1949:09    173.1563    174.5455
1949:10    173.3737    174.7645
1949:11    173.5861    174.9786
1949:12    173.9431    175.3385
1950:01    174.6368    176.0378
1950:02    175.5457    176.9540
1950:03    176.1972    177.6107
1950:04    177.3373    178.7599
1950:05    178.1260    179.5549
1950:06    178.7413    180.1753
1950:07    179.3287    180.7674
1950:08    179.6359    181.0770
1950:09    179.8564    181.2993
1950:10    180.4709    181.9187
1950:11    180.8841    182.3353
1950:12    181.6227    183.0797
1951:01    182.3340    183.7967
1951:02    182.6456    184.1108
1951:03    183.3142    184.7848
1951:04    183.7504    185.2245
1951:05    184.3430    185.8218
1951:06    185.2619    186.7482
1951:07    186.3217    187.8165
1951:08    187.2254    188.7274
1951:09    188.6331    190.1464
1951:10    189.8363    191.3592
1951:11    191.3476    192.8826
1951:12    192.4915    194.0357
1952:01    193.7874    195.3420
1952:02    194.8892    196.4527
1952:03    195.7493    197.3197
1952:04    196.2907    197.8654
1952:05    197.3728    198.9562
1952:06    198.5903    200.1834
1952:07    199.3434    200.9426
1952:08    200.5350    202.1438
1952:09    201.9521    203.5723
1952:10    203.0551    204.6841
1952:11    204.2742    205.9130
1952:12    205.2255    206.8719
1953:01    205.9265    207.5785
1953:02    206.6399    208.2976
1953:03    207.8884    209.5561
1953:04    208.9287    210.6048
1953:05    209.7142    211.3966
1953:06    210.4361    212.1242
1953:07    211.3880    213.0838
1953:08    212.2721    213.9751
1953:09    212.9941    214.7028
1953:10    214.0079    215.7247
1953:11    214.8274    216.5508
1953:12    215.6782    217.4085
1954:01    216.6803    218.4186
1954:02    217.6833    219.4296
1954:03    218.6351    220.3890
1954:04    218.9949    220.7517
1954:05    220.9608    222.7335
1954:06    221.9706    223.7513
1954:07    223.4226    225.2150
1954:08    224.8953    226.6995
1954:09    225.8098    227.6213
1954:10    227.2141    229.0369
1954:11    228.4272    230.2597
1954:12    229.3816    231.2218
1955:01    230.8789    232.7311
1955:02    232.4775    234.3425
1955:03    232.7379    234.6050
1955:04    233.7045    235.5793
1955:05    235.0597    236.9454
1955:06    235.6810    237.5717
1955:07    246.7014    248.6805
1955:08    237.2268    239.1299
1955:09    238.4368    240.3496
1955:10    239.3478    241.2680
1955:11    239.8666    241.7909
1955:12    240.9213    242.8541
1956:01    241.8306    243.7706
1956:02    242.3360    244.2801
1956:03    243.1917    245.1426
1956:04    244.2669    246.2265
1956:05    244.7273    246.6906
1956:06    245.8384    247.8106
1956:07    246.1121    248.0865
1956:08    247.3842    249.3688
1956:09    248.5974    250.5917
1956:10    249.3103    251.3103
1956:11    250.4244    252.4334
1956:12    251.5745    253.5927
1957:01    252.7790    254.8069
1957:02    253.7782    255.8141
1957:03    254.9237    256.9687
1957:04    255.7095    257.7608
1957:05    256.8606    258.9212
1957:06    257.7716    259.8395
1957:07    258.8370    260.9134
1957:08    259.8200    261.9043
1957:09    260.4408    262.5302
1957:10    261.2426    263.3384
1957:11    262.0603    264.1626
1957:12    262.8192    264.9276
1958:01    263.3308    265.4434
1958:02    265.8073    267.9397
1958:03    268.1263    270.2773
1958:04    270.3154    272.4840
1958:05    272.3454    274.5303
1958:06    274.8308    277.0355
1958:07    276.2947    278.5112
1958:08    278.2675    280.4998
1958:09    279.7730    282.0175
1958:10    281.1726    283.4282
1958:11    282.9753    285.2454
1958:12    284.2217    286.5019