one big problem is that the Federal Reserve has almost no control over M3. And its magnitude, like those of other measures of the money supply, is to a large extent determined by the economy's dynamics rather than _vice versa_.
> Sharp US money supply contraction points to Wall Street crunch ahead > Ambrose Evans-Pritchard > Financial Times, Last Updated: 12:01AM BST 23 Aug 2008 > > The US money supply has experienced the sharpest contraction in modern > history, heightening the risk of a Wall Street crunch and a severe > economic slowdown in coming months. > Data compiled by Lombard Street Research shows that the M3 ''broad > money" aggregates fell by almost $50bn (£26.8bn) in July, the biggest > one-month fall since modern records began in 1959. -- Jim Devine / "Nobody told me there'd be days like these / Strange days indeed -- most peculiar, mama." -- JL. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
