Tag Archives: M1

Two long leading indicators – real money supply and credit conditions – worsen  – by New Deal democrat ~~~~~~~ M1 and M2 money supply for May was reported yesterday by the Fed. The former was unchanged for the month, and the latter was up a tiny 0.1%: That is significant. Why? Because real money supply is a long leading indicator. Real M2 fell out of favor after failing to actually decline YoY prior to the 2001 and 2008 recessions, but a...

Money creation and sight deposits may have two points of view: 1. The central bank creates money - i.e. the SNB decides to increase sight deposits when it does currency interventions 2. Commercial banks create money - inflows in CHF on Swiss bank accounts make those banks increase their "sight deposits at the SNB. If inflows in CHF are higher than outflows then CHF must rise, unless the central bank does currency interventions. We will present both alternatives.

This IMF data on the SNB website shows SNB Forex and gold reserves in the last month. It is so-called "IMF Special Data Dissemination Standard (SNB Data)"