updated through

Monetary Trends 06/03/09

Velocity
Nominal GDP/MZM, Nominal GDP/M2 (Ratio Scale)
2.75

2.50
MZM
2.25

2.00
M2

1.75

1.50

1.25
92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09
11688 12054 12419 12784 13149 13515 13880 14245 14610 14976 15341 15706 16071 16437 16802 17167 17532 17898 18263

Interest Rates
Percent
8

3-Month T-Bill
4
M2 Own

2
MZM Own

0
92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09
11688 12054 12419 12784 13149 13515 13880 14245 14610 14976 15341 15706 16071 16437 16802 17167 17532 17898 18263

MZM Velocity and Interest Rate Spread M2 Velocity and Interest Rate Spread
Ratio Scale Ratio Scale

3.50 2.25
Velocity = Nominal GDP / MZM

Velocity = Nominal GDP / M2

3.00 2.00

2.50 1.75

2.00 1.50

1974Q1 to 1993Q4 1974Q1 to 1993Q4

1994Q1 to present 1994Q1 to present
1.25
1.50

0 1 2 3 4 5 6 7 8 9 10 11 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0
Interest Rate Spread = 3-Month T-Bill less MZM Own Rate Interest Rate Spread = 3-Month T-Bill less M2 Own Rate

Research Division
12 Federal Reserve Bank of St. Louis