Paul-
It's my understanding (limited) that the monetary base is not M3, but is the "base" (more like reserves) from which all the monetary figures multiply. The monetary base is currently 493.3 Bill., M1 1073.4 Bill.,
M2 4015.6 Bill., and M3 5320.5 Bill. I could be wrong on this, 49'er will know.
You are correct in saying that it doesn' filter down through all levels equally.Figured very loosely, over the last 2 week period the monetary base increased at 11%, M3 at 10.6%, M2 at 5.9%,
and M1 at 3.3%. Over the same 2 week period of 1996
the monetary base increased at 6.6%, M3 at 7.65%,
M2 at 6.1%, and M1 at 5.7%.
I got figures at stls.frb.org
Clearly, there's a greater divergence in the trends of each, suggesting that both scenarios of money going to Asia and monetary deflation are taking
place.
PR |
