From Heinz on money supply numbers ...
Hi Mish,
when in doubt, go with Shostak. imo one of the best economists of our time actually, with a deep understanding of monetary issues specifically. money AMS is indeed a good measure, since it filters out a lot of noise.
regards,
hb
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A repeat of the links from my first post on Money Supply
Making Sense of Money Supply Data
There are many available definitions of the money stock: M1, M2,
M3, MZM, and a host of others. Frank Shostak says that it actually does matter which one we use. Citing the work of Austrians, he argues for a uniquely Austrian definition of the money stock that only counts money and doesn't count investments. The AMS is consistent with Austrian theory, gives a realistic picture of the actual facts, and also serves as a better tool for forecasting.
[This is a good read, written it seems in 2003, yet the charts inside seem up to date - mish]
mises.org
Money AMS Display Weakness
Another good article on Current Money supply
mises.org
Mish |
