### Fed. Reserve data released March 11 shows steady high demand for demand for US currency.

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Fed data of March 11 shows that currency in circulation grew by 5 billion dollars in February. I calculate this monthly growth rate at 11%, rounded. That matches the highest monthly growth rate of all of 1998, which occurred in September.

The currency in circulation grew 63% faster in Feb. 1999, as compared to Feb. 1998.

My math is awful, so check my results.

See http://www.federalreserve.gov/releases/H6/Current/

-- Puddintame (dit@dot.com), March 15, 1999

Pud. .. Had my one and only economics course over fifty years ago. Do these figures mean 5 billion more in circulation , as when people draw it out/keep from depositing it and spend same on goods ? Or, that they withdrew it and are holding it in reserve ? OR, a combination of both ??? Indulge me ! It's my 71st birthday and I am definately a GI. Eagle .... Still working on the nest.

-- Harold Walker (e999eagle@freewwweb.com), March 16, 1999.

Harold, This just means that it is out in circulation in general. No one has data on how much people are "holding" vs. how much they are going to spend. The currency component is not money held in reserve by banks. On the other hand, it does include dollar bills that you may have put in your safe deposit box 30 years ago. Technically those dollar bills are in circulation despite the fact that they don't really circulate. If this doesn't address your question I hope someone else will chip in.

-- Puddintame (dit@dot.com), March 16, 1999.

How much of that currency is being vacuumed away from the US by other folks whose currencies are evaporating?

-- Watchful (seethesea@msn.com), March 16, 1999.

Puddintame: What are you using for your 'M1' base (currency in circulation, not counting demand deposits?)

-- Spidey (in@jam.com), March 16, 1999.

Spidey, I think the figures I'm looking at are the currency component of M1. The Fed breaks down M1 into a number of discrete components, one of which is currency. Currency figures are given separately from demand deposits and travelers checks. The percentage figures I calculated were figured with the currency component figures only. Does this answer your question?

-- Puddintame (dit@dot.com), March 16, 1999.

Spidey, \$462.6 billion currency end of January. \$467.6 currency end of February (a preliminary figure).

-- Puddintame (dit@dot.com), March 16, 1999.

Happy birthday, Howard!

So, folks, when was the last time you saw a \$5 bill that didn't look as though your cat just spat it up? Seems like a pretty high precentage lately of mangy \$1 bills, too.

-- Brooks (brooksbie@hotmail.com), March 16, 1999.

Brooks, now you've done it! Yet another "red truck" for me to be on the lookout for.

-- Puddintame (dit@dot.com), March 16, 1999.

Puddintame: Thanks. But I put the growth rate at just over 1% (1% of 462 billion being 4.62 billion). Am I missing something obvious?

-- Spidey (in@jam.com), March 16, 1999.

Spidey, my typing is even worse than my math. My original post was intended to read 1.1% rounded. Yes, the 11% figure is way bad. Similarly, the highest monthly growth rate in 1998 was about 1.1%. Thank you for the correction. I usually post the raw figures. I guess I'd better go back to doing that. My apologies for causing you to spend time on that figure.

-- Puddintame (dit@dot.com), March 16, 1999.