US - Money Supply
Refinancingmortgagejobs e Refinancingmortgagejobs i
Www searchp Inhibitor a Inhibitor e Uptake i0 Tag Uptake e Inhibitor i Inhibitor asearchWsearch.searchK
Uptake searchag Inhibitor C1e Inhibitor rhsearchc Uptake nsearchmsearchr Inhibitor gsearchg
jsearchbs
w Uptake e Uptake rsearchh Www
The monetary aggregates are alternative measures of the money supply by degree of liquidity. Changes in the monetary aggregates indicate the thrust of monetary policy as well as the outlook for economic activity and inflationary pressures.
Why Investors Care?
In recent years, the various money supply measures have not mattered to most investors - though that has changed somewhat recently. The monetary aggregates (known individually as M1, M2, and M3) used to be all the rage when the Fed did not publicly announce it interest rate target because the data revealed the Fed's (tight or loose) hold on credit conditions in the economy. The Fed in the past issued target ranges for money supply growth at its first report to Congress each year. In the past, if actual growth moved outside those ranges it often was a prelude to an interest rate move from the Fed. Today, the Fed no longer sets money supply targets due to a variety of changes in the financial system and the way the Federal Reserve conducts monetary policy. Monetary policy is understood more clearly by the level of the federal funds rate.
But with the Fed cutting the fed funds rate to essentially zero in December 2008, markets began to look for other ways (other than rate changes) for viewing the progress and impact of quantitative easing - and tracking the money supply became one of numerous methods of seeing how the Fed's further injections of liquidity were filtering through the economy.
Importance
This indicator has had low importance during the Fed's publicly announced interest rate targeting period but has gained a little more stature during quantitative easing since the fed funds rate has been at essentially zero.
Interpretation
Markets focus on measures of money supply that are relatively liquid - M1 and M2. These are basically cash, checking deposits, and savings types of accounts. However, both measures are somewhat volatile on a weekly basis and monthly data give a better picture of how much liquidity the Fed has injected into financial markets has been converted into readily spendable forms.
Source
Federal Reserve Board of Governors
Availability
Thursdays.
Coverage
Data are for week ending on Monday two calendar weeks prior to release (April 6, 2009 data released April 16, 2009).
Revisions
Yes.
Frequency
Weekly
| 10/02/2012 | | | | Consumer Price Index (CPI) - m/m | | | -0.4% | Jan | |
Country: Germany - CPI
Definition
The consumer price index is a measure of the average price level of a fixed basket of goods and services purchased by consumers. Monthly changes in the CPI represent the rate of inflation. The data are released sometime during the day.
Why Investors Care?
The consumer price index is the most widely followed indicator of inflation. An investor who understands how inflation influences the markets will benefit over those investors that do not understand the impact. In countries such as Germany where monetary policy decisions rest on the central bank's inflation target, the rate of inflation directly affects all interest rates charged to business and the consumer. As a member of the European Monetary Union, Germany's interest rates are set by the European Central Bank.
Germany like other EMU countries has both a national CPI and a harmonized index of consumer prices (HICP). The HICP is calculated to give a comparable inflation measure for the EMU. Components and weights within the national CPI vary from other countries, reflecting national idiosyncrasies. The preliminary release is based on key state numbers which are released prior to the national estimate. The states include North Rhine-Westphalia, Baden-Wrttemberg, Saxony, Hesse, Bavaria and Brandenburg. The release date is not announced in advance but the preliminary estimate of the CPI follows the state releases by a day or two. The data are revised about two weeks after preliminary release.
Inflation is an increase in the overall prices of goods and services. The relationship between inflation and interest rates is the key to understanding how indicators such as the CPI influence the markets - and your investments. As the rate of inflation changes and as expectations on inflation change, the markets adjust interest rates. The effect ripples across stocks, bonds, commodities, and your portfolio, often in a dramatic fashion.
By tracking inflation, whether high or low, rising or falling, investors can anticipate how different types of investments will perform. Over the long run, the bond market will rally (fall) when increases in the CPI are small (large). The equity market rallies with the bond market because low inflation promises low interest rates and is good for profits.
Frequency
Monthly |
| 10/02/2012 | | | | Consumer Price Index (CPI) - y/y | | | 2.0% | Jan | |
Country: Germany - CPI
Definition
The consumer price index is a measure of the average price level of a fixed basket of goods and services purchased by consumers. Monthly changes in the CPI represent the rate of inflation. The data are released sometime during the day.
Why Investors Care?
The consumer price index is the most widely followed indicator of inflation. An investor who understands how inflation influences the markets will benefit over those investors that do not understand the impact. In countries such as Germany where monetary policy decisions rest on the central bank's inflation target, the rate of inflation directly affects all interest rates charged to business and the consumer. As a member of the European Monetary Union, Germany's interest rates are set by the European Central Bank.
Germany like other EMU countries has both a national CPI and a harmonized index of consumer prices (HICP). The HICP is calculated to give a comparable inflation measure for the EMU. Components and weights within the national CPI vary from other countries, reflecting national idiosyncrasies. The preliminary release is based on key state numbers which are released prior to the national estimate. The states include North Rhine-Westphalia, Baden-Wrttemberg, Saxony, Hesse, Bavaria and Brandenburg. The release date is not announced in advance but the preliminary estimate of the CPI follows the state releases by a day or two. The data are revised about two weeks after preliminary release.
Inflation is an increase in the overall prices of goods and services. The relationship between inflation and interest rates is the key to understanding how indicators such as the CPI influence the markets - and your investments. As the rate of inflation changes and as expectations on inflation change, the markets adjust interest rates. The effect ripples across stocks, bonds, commodities, and your portfolio, often in a dramatic fashion.
By tracking inflation, whether high or low, rising or falling, investors can anticipate how different types of investments will perform. Over the long run, the bond market will rally (fall) when increases in the CPI are small (large). The equity market rallies with the bond market because low inflation promises low interest rates and is good for profits.
Frequency
Monthly |
| 10/02/2012 | 07:45 | | | Industrial Production (IP) - m/m | | | 1.1% | Dec | |
Country: France - Industrial Production
Definition
Industrial production measures the physical output of the nation's factories, mines and utilities.
Why Investors Care?
Investors want to keep their finger on the pulse of the economy because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers more subdued growth that won't lead to inflationary pressures. By tracking economic data such as industrial production, investors will know what the economic backdrop is for these markets and their portfolios. Like the PPI and the orders data, construction is excluded from the data. This report has a big influence on market behavior. In any given month, one can see whether capital goods or consumer goods are growing more rapidly. Are manufacturers still producing construction supplies and other materials? This detailed report shows which sectors of the economy are growing and which are not.
Frequency
Monthly |
| 10/02/2012 | 07:45 | | | Industrial Production (IP) - y/y | | | 0.9% | Dec | |
Country: France - Industrial Production
Definition
Industrial production measures the physical output of the nation's factories, mines and utilities.
Why Investors Care?
Investors want to keep their finger on the pulse of the economy because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers more subdued growth that won't lead to inflationary pressures. By tracking economic data such as industrial production, investors will know what the economic backdrop is for these markets and their portfolios. Like the PPI and the orders data, construction is excluded from the data. This report has a big influence on market behavior. In any given month, one can see whether capital goods or consumer goods are growing more rapidly. Are manufacturers still producing construction supplies and other materials? This detailed report shows which sectors of the economy are growing and which are not.
Frequency
Monthly |
| 10/02/2012 | 08:15 | | | Consumer Price Index (CPI) - m/m | | | -0.2% | Jan | |
Country: Switzerland - Consumer Price Index
Definition
ok z Refinancing Mortgage Jobs Refinancing m m Refinancing Refinancing Mortgage Jobs
mi b b Loan Refinancing A |