SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : Money Supply & The Federal Reserve
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: marcos who wrote (61)8/10/2002 4:44:52 PM
From: Mike Chupp  Read Replies (1) of 1379
 
marcos, interesting question. Being neither an economist or banker i will make a stab at trying to answer.

M0 = current currency
M1 = checkings accounts, etc
m2 = CD, savings accounts

I believe that at present time the mandated bank reserve requirements are: m1=10% m2=0%. Reserve must be kept in lock up or deposited with FRB.

So M0 + (.10 * M1) is the current reported $ available for use. Keep in mind that M2 with no reserve requirement is much greater than M1.

After going through all of these assertions one could assume that very few trees would be left standing if reported $ were converted from electrons to paper currency.

Could somebody please verify current M1 M2 reserve requirements?.

Mike
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News