Monetary Services Index: MZM (preferred)
MSIMZMP • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
9,639.90
Year-over-Year Change
6.01%
Date Range
1/1/1967 - 12/1/2013
Summary
The Monetary Services Index (MZM) measures the velocity and liquidity of money in the U.S. economy, providing insights into monetary circulation and potential economic activity. It helps economists and policymakers understand the broader dynamics of money supply and its potential impact on economic performance.
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
MZM represents Money Zero Maturity, which includes all money market funds, demand deposits, and other liquid assets that can be quickly converted to cash without significant penalty. Economists use this index to track monetary conditions and potential inflationary pressures in the financial system.
Methodology
The index is calculated by the Federal Reserve using comprehensive data on monetary aggregates, tracking the liquidity and transaction potential of different money supply components.
Historical Context
Policymakers and central bankers use the MZM to inform monetary policy decisions, assess economic liquidity, and gauge potential inflationary trends.
Key Facts
- MZM excludes time deposits and focuses on immediately accessible monetary assets
- Provides a more dynamic view of money circulation compared to traditional monetary measures
- Helps predict potential economic shifts and inflationary pressures
FAQs
Q: What does MZM specifically measure?
A: MZM measures the most liquid forms of money in the economy, including cash, checking accounts, and money market funds that can be immediately accessed.
Q: How is MZM different from other monetary measures?
A: Unlike M1 or M2, MZM focuses exclusively on money that can be immediately used for transactions, providing a more precise liquidity snapshot.
Q: Why do economists track the MZM index?
A: Economists use MZM to understand monetary velocity, potential inflationary trends, and overall economic liquidity conditions.
Q: How often is the MZM index updated?
A: The Federal Reserve typically updates the MZM index on a monthly basis, allowing for consistent tracking of monetary conditions.
Q: What are the limitations of the MZM index?
A: While valuable, the MZM index doesn't capture all economic complexities and should be used alongside other economic indicators for comprehensive analysis.
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Citation
U.S. Federal Reserve, Monetary Services Index: MZM (preferred) [MSIMZMP], retrieved from FRED.
Last Checked: 8/1/2025