The Treasury spent the spring of 2020 building up an unprecedented amount of cash in its General Account, which still remains as of February 2021. This circumstance impairs the usefulness of money supply measures such as those in our previous post, as there is a large amount of money “locked out” of the economy, but still included in the measure. If this situation persists, money supply measures with Treasury cash excluded should be considered.

2003-Present. Millions of Dollars.