This article, is again in the Telegraph by Ambrose Evans-Pritchard who I don't like politically, but it has the merit of a number of illustrative graphs and of having been written back on July 11.
Most usefully it has a fairly ironic and nuanced assessment of the critical perspective of different schools of monetarism who fight like "alley cats". It might still be pointing to something real, even if they do not know what. http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/2793075/Monetarists-warn-of-crunch-across-Atlantic-economies.html "The monetary picture is highly complex. The different measures - M1, M2, M3, M4 - have all given false signals in the past. Each tells a different tale, and monetarists fight like alley cats among themselves." The Federal Reserve stopped paying much attention to the data a long time ago. It has abolished M3 altogether. The US economic consensus is New-Keynesian (dynamic stochastic general equilibrium model). Delving into the money entrails is derided as little better than soothsaying. That attitude, retort monetarists, is the root cause of the credit bubble. The money supply almost always gives advance warning of big economic shifts. Those who track the data are now calling on central banks to move with extreme caution. If the rate-setters overreact to an inflation spike caused by oil and food - or confuse today's climate with the early 1970s - they may set off an ugly chain of events." Chris Burford ----- Original Message ----- From: "Julio Huato" <[EMAIL PROTECTED]> To: <[email protected]> Sent: Tuesday, September 30, 2008 10:01 PM Subject: [Pen-l] Re: What's the total amount of money in the whole world ? | Laurent GUERBY wrote: | | > M1/2/3/4 are defined by economists, | | Last time I checked, there was no M3 anymore. And M4 doesn't exist -- | in the U.S. (The Brits have M4, but that's nothing to do with the | sequence M1, M2, etc.). That's why I said, assuming they are defined. | _______________________________________________ _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
