Dude! What happened to M3?
On November 10th 2005 just before the three day Veterans Day holiday after the credit markets closed the FED announced that it would cease publishing M3 effective March 23, 2006. What was the reason that the FED gave to stop publishing this number?
"M3 does not appear to convey any additional information about economic activity that is not already embodied in the M2 aggregate. The role of M3 in the policy process has diminished greatly over time. Consequently, the costs of collecting the data and publishing M3 now appear to outweigh the benefits."
Well there you have it. That statistic is useless and a waste of data collection time. What fools they have been for all these years to collect data and publish the M3 figure. Or was it? One may wonder what the difference is between M2 and M3 or for that matter M0. For one M3 is widely regarded as the leading indicator of both economic activity and inflation.
So what exactly is the FED trying to hide?