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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: mishedlo who wrote (56445)3/22/2006 6:03:10 PM
From: Clarksterh  Read Replies (3) of 110194
 
That measure is called the increase in money supply and credit.

I'd love to see a paper that ties money supply so directly to inflation. For instance you can have a large increase in money supply and it all goes into savings accounts.

Or you can have a change in the velocity of money and get inflation even without any increase in money supply (in fact I would argue that with the move to just-in-time manufacturing and direct internet marketing we have significantly increased the velocity of the system and changed the tie between money supply and consumer inflation.).

Yes, money supply is easier to measure. But does it really matter or is it like the drunk searching under the street lamp for the coin he lost 30 feet away?

Clark
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