Effects of Seasonal Adjustment on the Money Stock
The emphasis placed on money stock changes in the conduct and analysis of monetary policy has recently increased interest in the seasonal adjustment of the money stock. This new interest can be seen several ways. Money market analysts, for example, are using an apparent seasonal pattern in the seasonally adjusted money stock as an aid to prediction. Also, annual revisions in the seasonal adjustment factors the Federal Reserve uses in adjusting raw money figures seem to be getting bigger. The most recent revisions were the largest ever.