This section sets out the euro area monetary aggregates and counterparts. These are derived from the consolidated monetary financial institution (MFI) balance sheet and take account of some central government monetary assets/liabilities. This section also includes information on additional elements of relevance when using the monetary statistics published by the ECB; these include the derivation of flows, the index of notional stocks and the contributions to the annual growth rate of M3.
For data and information on MFI balance sheet statistics, see MFI balance sheets
Monetary aggregates comprise monetary liabilities of MFIs and central government (post office, treasury, etc.) vis-à-vis non-MFI euro area residents excluding central government.
M1 is the sum of currency in circulation and overnight deposits; M2 is the sum of M1, deposits with an agreed maturity of up to two years and deposits redeemable at notice of up to three months; and M3 is the sum of M2, repurchase agreements, money market fund shares/units and debt securities with a maturity of up to two years.
The ECB calculates the growth rates of monetary aggregates and of the components and the counterparts to monetary aggregates on the basis of adjusted flows rather than the simple comparison of end-of-period levels.
Stock data refer to the value of assets and liabilities on the last day of the reference period (month or quarter), which is as a rule the last calendar day.
The transactions for the current period are calculated by deducting the effect of factors that do not relate to transactions from the difference in stocks over the period. These factors are:
These factors give rise to breaks in the series and hence affect the comparability of two successive end-of-period stocks.
For additional information on the derivation of time series for outstanding amounts, transactions, indices of notional stocks and growth rates, see the Manual on MFI balance sheet statistics (last update: 18 April 2012).
Unless otherwise stated, the reference area for euro area monetary statistics covers all of the euro area countries at the time to which the statistics relate.
Seasonal adjustment is the process of estimating and removing seasonal effects from a time series. The seasonal adjustment procedures used by the ECB also cater for calendar adjustment, where relevant.
The approach used to seasonally adjust the euro area monetary aggregates and counterparts relies on a multiplicative decomposition using the X-12-ARIMA method. Outliers are taken into consideration to minimise distortions to the estimated seasonal and calendar adjustments.
To ensure that the seasonally adjusted components are additive to the seasonally adjusted aggregates, some of the seasonally adjusted series, in particular M3, are derived indirectly. The difference between direct and indirect estimates of euro area monetary aggregates is regularly monitored and, generally has proven to be negligible.
Forecast seasonal factors are also used and revised when required, for example, in the case of large data revisions or where the models used are statistically inadequate when new data are incorporated. For this purpose, a concurrent adjustment is run on a monthly basis in order to assess the validity of the seasonal factors in use.
For the list of seasonally adjusted monetary statistics (with a start date), see List of seasonal adjusted monetary statistics (last update: 28 June 2013) .
For a detailed description of the compilation of monetary aggregates and counterparts, see the Manual on MFI balance sheet statistics (last update: 18 April 2012) .