Tag: "money supply"

The Slow Recovery, Simplified & Rounded

Not everybody waits like me every morning for the latest stat on how the economy is doing or every straw in the wind. Most people are more likely than I am to have a life. When I speak to such people in audiences, I have the uneasy feeling that sharing the detailed results of my […]

The Fed Has Not Been Printing Boatloads of Money

As I listen to commentary on cable TV about the Fed’s quantitative easing, I find it amazing that people smarter than I, as well as better trained and more knowledgeable about many things, keep making the same mistake they have made for the past three or four years. Their predictions of an inflationary break-out and/or […]

The Money Supply Logjam May Finally Be Loosening

For those of us seeking relief from the hot air in Washington and the rest of the country, it comes in a little noticed bounce in the money supply statistics. The Fed’s latest estimates for M2, in its H.6 release on July 21, shows the growth rate for the past 3 months at 8.2 percent; […]

Money Supply Growth

If the money supply increases 10 percent in 3 months, we call it a 40 percent annualized increase. If it flattens at three months and is at the same level 3 months after that, it becomes a 20 percent annual rate for the 6 months. Six months later, if money growth remains flat, it becomes […]

Monetary Policy Ambiguities

The stance of monetary policy is confusing these days. The target Federal funds rate is near zero, but that's the nominal rate. With inflation low, the real rate cannot move as far into negative territory as it could if inflation were higher. It's not "zero bound," but it's much closer than usual. I've always regarded […]

Is the Fed Printing Too Much Money?

For as long as I can remember people have referred to the Fed printing money-usually when they disapprove. The implication is that printing money is inflationary. I've always assumed that those who use that terminology understood that "printing money" shouldn't be taken literally. Nowadays, I'm not so sure. Several financial talking heads I've heard recently […]

What to Do, or Not Do, To Prevent a Depression

Several policy mistakes were made during the 1930s that turned what could have been an ordinary recession into the Great Depression. Let's review just a few of them in the interest of not repeating them.