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To: s-words who wrote (99063)	5/2/2001 4:22:27 PM
From: Les H	Respond to of 436258

I thought he was talking about "Free Base".

To: s-words who wrote (99063)	5/2/2001 4:40:02 PM
From: Ilaine	Read Replies (1) \| Respond to of 436258

Re: monetary base - I think these days economists (Kasriel at Northern Trust, for one) are looking at data on the St. Louis fed website - weekly data is too "noisy" to be reliable. stls.frb.org

To: s-words who wrote (99063)	5/2/2001 4:45:35 PM
From: Haim R. Branisteanu	Respond to of 436258

May be he refers to the adjusted base which is kind of alchemy. stls.frb.org

To: s-words who wrote (99063)	5/2/2001 4:57:44 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 436258

Allan, the so-called monetary base IS contracting. it is however also a useless measure for the money supply, contrary to the broad measures MZM and M3. the reason why the monetary base is contracting is that it includes vault cash at depositary institutions, and i believe it is that component which is declining (since the currency component of M1 clearly isn't). it has no effect whatsoever on the economy whether there is or isn't a lot of cash in vaults. so Kudlow is as usual barking up the wrong tree.