The Magic Wand of Liquidity Page
MZM comprises all monetary instruments that have zero maturity and hence are redeemable at par on demand. Included are M1, savings deposits, and all money market mutual funds.
The Fed's expansive monetary policies since the early 1990s (with a brief respite in 1994) can be seen as The Magic Wand of Liquidity. With the Wand, the Fed has created an illusion of boundless economic prosperity.