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To: c.hinton who wrote (6677)5/18/2000 2:30:00 PM
From: JDN  Read Replies (1) | Respond to of 11568
 
Dear Chinton: I am not an economist, but as I recall the FED can pump money into the economy by lending to banks (that creates NEW money), they can reduce the supply of money by the opposite. If they raise interest rates that tends to reduce the bank borrowings thus reducing the money supply and vice versa. I believe that is M2. Frankly, I have forgotten what is M1. JDN


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