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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Hawkmoon who wrote (107128)2/28/2008 8:45:35 AM
From: Paul KernRead Replies (1) of 306849
 
Hawk,

Those of us took who economics in the mid 1960s were taught, as a quick rule of thumb, that M3 needs to grow at an amount equal to GDP growth plus a small fudge factor to allow more growth.

More than that is inflationary.

As to the velocity of money, since the Fed no longer posts M3, that calculation is now only a guesstimate.
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