Monetary Services Index: M1 (preferred)
MSIM1P • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
3,483.70
Year-over-Year Change
6.24%
Date Range
1/1/1967 - 12/1/2013
Summary
The Monetary Services Index: M1 (preferred) tracks the liquidity and transaction services provided by money supply components. It offers economists a nuanced view of monetary conditions and potential economic activity beyond traditional money supply measurements.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
This index represents a sophisticated approach to measuring monetary services by weighting different components of the M1 money supply based on their transaction utility. Economists use it to understand the efficiency and velocity of money circulation in the financial system.
Methodology
The index is calculated by the Federal Reserve using a complex weighting methodology that considers the transaction services provided by different monetary assets.
Historical Context
Policymakers and central bankers use this index to assess monetary conditions and potential inflationary pressures in the economy.
Key Facts
- Provides a more nuanced view of money supply than traditional measurements
- Weights monetary components based on their transaction utility
- Helps economists understand money circulation efficiency
FAQs
Q: What makes the M1 (preferred) index different from standard money supply measures?
A: The M1 (preferred) index weights money components based on their transaction services, offering a more sophisticated analysis of monetary conditions than simple quantity measurements.
Q: How frequently is this index updated?
A: The Monetary Services Index is typically updated quarterly by the Federal Reserve, providing current insights into monetary dynamics.
Q: Why do economists find this index valuable?
A: It provides a more comprehensive view of monetary services, helping analysts understand the actual economic utility of different money supply components.
Q: Can this index predict economic trends?
A: While not a direct predictive tool, the index offers important signals about monetary conditions that can indicate potential economic shifts.
Q: What are the limitations of this index?
A: Like all economic indicators, the Monetary Services Index provides a snapshot of conditions and should be used in conjunction with other economic data for comprehensive analysis.
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Citation
U.S. Federal Reserve, Monetary Services Index: M1 (preferred) [MSIM1P], retrieved from FRED.
Last Checked: 8/1/2025