Spencer on Macroeconomic Policy Nexus

The FOMC's proviso "bank credit proxy" used to be included in the FOMC’s directive during the Sept 66 - Sept 69 period. "1966 A new measure, the bank credit proxy, was developed during the year in order to get current information about the operating guide more frequently. This measure infers changes in member bank loans and investments (assets) from changes in member hank deposits (liabilities). Deposit data are available weekly on a daily average basis, whereas bank credit data are available less frequently." Today we have the opposite situation. The money stock measures are delayed, while bank credit is published much sooner. Commercial bank credit shows the FED is not tight, in fact it is validating the increases in real estate.