Consequently, we set the own rate on small-denomination time deposits at commercial banks and at thrift institutions for June 1978-September 1983 equal to the ceiling rates on 6-month money market time deposits.
Yield-Curve Adjustment of Small-Denomination Time Deposits
The stock of small-denomination time deposits includes deposits with a range of different maturities.
Specifically, we constructed alternative own rates of return on small-denomination time deposits defined as the maximum of the yield-curve-adjusted rates on the available maturities and we yield-curve adjusted all short-term yields included in the upper envelope.
Increases in savings and small-denomination time deposits likely reflect flight to quality since these deposits are FDIC insured.
We construct such unilateral user cost indexes, based on the Jevons formula, for the following monetary asset categories: small-denomination time deposits at commercial banks and thrift institutions; large-denomination time deposits; total Eurodollar deposits; bankers' acceptances; and commercial paper.
25) In our MSI database, we use the Jevons formula to create user cost sub-indexes for small-denomination time deposits at commercial banks and thrift institutions, large-denomination time deposits, total Eurodollar deposits, bankers acceptances, and commercial paper.
15 Ceiling on small-denomination time deposits with original maturity of three and one-half years or longer were removed in May 1982, and on all other small-denomination time deposits on October 1, 1983.
Data published by the Board of Governors regarding the outstanding stocks of small-denomination time deposits by original-issue maturity are not appropriate for calculating index numbers (see Table 1.
Small-denomination time deposits also have several applicable own rates due to the existence of both variable and fixed ceiling-rate time deposits from 1978.