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M3: The wide-range monetary aggregate for the U.S. economy containing the combination of M2 (currency, checkable deposits, and assorted savings deposits) and large-denomination, institutional near monies. M3 contains financial assets that are relatively liquid, but not quite as liquid as those found in M1 or M2. The near monies added to M2 to derive M3 include large denomination certificates of deposit, institutional money market mutual funds, repurchase agreements, and Eurodollars. M3 is one of three monetary aggregates tracked and reported by the Federal Reserve System. The other two are designated M1 and M2.
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                           WHOLESALE PRICE INDEX: An index of the prices paid by retail stores for the products they ultimately resell to consumers. The Wholesale Price Index (WPI) was the forerunner of the modern Producer Price Index (PPI) and was discontinued in 1978. Other noted price indexes used to track economic activity are the Consumer Price Index (CPI) and the GDP price deflator. The Wholesale Price Index (WPI) was first published in 1902, and was one of the more important economic indicators available to policy makers until it was replaced by the PPI in 1978. The change to Producer Price Index in 1978 reflected, as much as a name change, a change in focus of this index away from the limited wholesaler-to-retailer transaction to encompass all stages of production. While the WPI is no longer available, the family of producer price indexes provides a close counterpart in what is labeled the Finished Goods Price Index.The importance of the WPI rested with its ability to forewarn later changes in the Consumer Price Index (CPI) and inflation. The WPI's forecasting ability rested with the simply input-output relation for retail stores. In other words, the prices PAID BY retail stores for their inputs are largely passed along as prices CHARGED TO consumers buying these goods as outputs. An increase in the WPI resulting from higher input prices this month, is likely reflected in an increase in the CPI in future months. This forecasting ability was frequently useful for stabilization policies. Suppose, for example, that the Chairman of the Federal Reserve System wanted to prevent inflation. Even though the CPI and GDP price deflator were relatively stable, an increase in the WPI would have prompted the Chairman to initiate contractionary monetary policy, making a pre-emptive strike against inflation.
Recommended Citation:WHOLESALE PRICE INDEX, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2024. [Accessed: May 1, 2024].
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BROWN PRAGMATOX
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Today, you are likely to spend a great deal of time searching for rummage sales looking to buy either a combination CD player, clock radio, and telephone (with answering machine) or a revolving spice rack. Be on the lookout for florescent light bulbs that hum folk songs from the sixties.
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More money is spent on gardening than on any other hobby.
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"It is part of the American character to consider nothing as desperate. " -- President Thomas Jefferson
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AMW
Average Monthly Wage
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