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.
The expenditure share for small-denomination time deposits
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.