Monetary Expansion
DERIVED PROXYComposite signal from Fed balance sheet, M2, reserves, and debt velocity
How This Proxy Works
The Monetary Expansion Proxy is a composite score (0–100) derived from four components:
- 35% — Fed Total Assets (WALCL) z-score over 13-week rolling window
- 30% — Reserve Balances (WRESBAL) z-score
- 20% — M2 Money Stock growth z-score
- 15% — Debt growth velocity (acceleration in public debt issuance)
Higher values indicate more expansionary monetary conditions. This is a derived estimate, not a published government statistic.