It is a particular application of a Divisia index to monetary aggregates.

Since 1987, it has been the only monetary aggregate with a target range set annually.

"The Fed has to look at the economy and the extraordinary weak monetary aggregates," he said.

The recent strong growth in the monetary aggregates is seen by many analysts as another indication the economy may be stirring.

The analysts added that they expect further declines in the monetary aggregates next week.

More important, they said, are reports on the real economy and monetary aggregates.

The report, issued by the Fed, showed that all three monetary aggregates posted big increases.

Although the monetary aggregates have been under closer scrutiny in recent weeks, yesterday's announcement had no impact on bond prices.

M-2, the monetary aggregate the Fed tracks most closely, rose by $2.6 billion during the week.

Central banks monitor the amount of money in the economy by measuring monetary aggregates such as M2.