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To: ahhaha who wrote (81527)3/16/2001 12:53:29 PM
From: Ilaine  Respond to of 436258
 
Thank you for the explanation but I am not confusing clearances with money supply. I don't trust estimates of money supply because they depend on the definition of money.

Anyway, I gotta run, so I'll have to pick this up later.



To: ahhaha who wrote (81527)3/16/2001 1:37:17 PM
From: Mark Adams  Read Replies (1) | Respond to of 436258
 
re Clearances vs Money Supply;

IMO, the slow down in clearance activity suggest the velocity of money dropped, both as it disappeared due to the credit written off as bad debt, and as people started stashing cash under the mattress.

This resulted in a decrease in money availble to circulate, indirectly effecting money supply.

Holes here?