Between June and August 2001, the currency component of the “M1 aggregate”—which includes currency in circulation and demand deposits—reported by the US Federal Reserve, increases by the greatest amount over the June-August period since 1947, the first year for which this data is reported.
Economist William Bergman, who works at the Federal Reserve Bank of Chicago from 1990 to 2004, will later point out: “The August increase alone was the third largest single monthly increase since 1947, trailing only December 1999 (with pre-Y2K concern as well as terrorism threats) and January 1991 (the onset of US military action in Iraq, and an important enforcement month in the BCCI money laundering scandal).
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