February 1993 MONEY STOCK REVISIONS The attached historical data on the money stock reflect revisions from the annual benchmark and seasonal factor review. Monthly data for most items are shown from 1959 to 1992, and weekly figures for M1 and its components are shown from 1975 to 1992. Weekly figures for M2 and M3 are shown only for the period from 1981 to 1991, although weekly data for some individual components of the broader aggregates are shown for earlier years as well. Weekly data are based on weeks ended on Monday to correspond with the reporting cycle under contemporaneous reserve requirements. No data prior to 1975 have been constructed on the week-ended Monday basis. Data for the monetary aggregates have been benchmarked using call reports through September 1992 and other sources. The benchmark revision and seasonal revisions lowered the annual growth rate of M2 by .2 percentage point over 1992. Other annual growth rates of M1, M2 and M3 were revised by no more than .1 percentage point for any year. The benchmark incorporates a change in the type of data used to measure large time deposits held by domestic banks. Reports from issuing banks regarding bank holders of their CDs had previously been used; reports from banks of CDs they hold are now used, as they have been found to be more accurate. (This item is one of several that are subtracted from gross large time deposits to measure the quantity of such time deposits held by the nonbank public.) As a result of the change, this netting item revised upward by as much as $12 billion over the past seven years, thereby reducing the level of M3 by the same amount, but causing little revision to the annual growth rates of M3. The benchmark also incorporates corrections for the previous misreporting by banks of some brokered time deposits. Initially, these deposits had been misclassified as large time deposits, rather than as small time deposits. In last year's benchmark, this misclassification was corrected for data reported by several large banks in 1990 and 1991. In this year's benchmark, the misclassification was corrected for a large number of additional banks, for data reported over the past nine years. The reclassification of these deposits, which amounted to as much as $6 billion in 1988, boosted the level of M2 but left M3 unaffected. The benchmark also folded in historical data for several money market mutual funds that began reporting for the first time during 1992, raising the level of M3 by almost $9 billion in late 1992. Numerous other, smaller revisions were also made to the aggregates. Seasonal factors for the monetary aggregates have been revised using the X-11 ARIMA procedure applied to data through preliminary estimates for January 1993. The seasonal adjustment procedure used this year is identical to that of last year. The revisions to seasonal factors redistributed some growth in each of the aggregates from the first and fourth quarters to the second and third quarters of 1992.