what share of M1 money is actual currency?

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Expert Solution

In M1 money there is bank demand deposits and currencies and coins in circulation. Here I am presenting data of US about the M1 measures: from November 2018 to March 2020(in billions of dollars)

Date	Currency( (1)	Traveller's checks (2)	Demand deposits (3)	Other checkable deposits
At commercial banks (4)	At thrift institutions (5)	Total other checkable deposits (6)=(5)+(4)	total M1 (1)+(2)+(3)+(6)	share of currency in M1 currency/total M1
Month
Nov. 2018	1619.1	1.7	1451.4	332.4	293.4	625.9	3698.1	0.437819
Dec. 2018	1624.8	1.7	1492.9	333.4	293.7	627.1	3746.5	0.433685
Jan. 2019	1630.6		1480.2	343.8	285.9	629.8	3740.6	0.435919
Feb. 2019	1633.5		1498.1	341.8	286.2	628	3759.6	0.434488
Mar. 2019	1637.2		1458.3	342.8	291.6	634.4	3729.9	0.438939
Apr. 2019	1645.2		1487.9	353.6	294.3	647.9	3781	0.435123
43586	1650.8		1493.8	353.7	294.1	647.9	3792.5	0.43528
43617	1657.8		1527.1	351.6	296.3	647.9	3832.8	0.43253
43647	1666.6		1534.6	361.5	295.5	657	3858.2	0.431963
Aug. 2019	1674.3		1521.1	358.1	299.8	658	3853.4	0.434499
Sept. 2019	1685		1553.8	364.4	300.1	664.5	3903.3	0.431686
Oct. 2019	1693.4		1562.8	365	301.8	666.8	3923	0.431659
Nov. 2019	1703.4		1579.6	362.6	302.1	664.7	3947.7	0.431492
Dec. 2019	1710.9		1591.8	367.2	307.1	674.4	3977.1	0.430188
Jan. 2020	1720.8		1582.4	364.7	309.2	673.9	3977.1	0.432677
Feb. 2020	1723.6		1608.7	367.7	309.7	677.4	4009.7	0.429858
Mar. 2020	1744.8		1825.6	377.5	319.8	697.3	4267.7	0.408838

source: table 3, https://www.federalreserve.gov/releases/h6/current/default.htm

hence from the recent data of USA fed reserves we can say that the share of currencies in M1 is staying between 40-44% range.

Please note: I am assuming you are from the US and asking about US M1 measures. If you are asking about any other country please let me know in the comments and I'll provide you with such data accordingly.

Thanks

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Rahul Sunny answered 1 month ago

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