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To: Oblomov who wrote (134914)11/16/2001 6:28:17 PM
From: Haim R. Branisteanu  Read Replies (1) | Respond to of 436258
 
Oblomov, who else can "print money" besides the FED?.

M2 is quite a reliable indication of money in the system and the FED can control it via the FED "window".

Each central bank in the world can create it's own currency at will. What you imply is that there is a flow of funds into the clown buck. Again this will generate more liquidity in the US on the expense of other economies. That is bad for the US longer term - easy come easy go <gg> it may be that substantial "money" comes from the Mattress Bank and due to the Euro conversion.

The FED is supposed to control market liquidity. M2 growth should match economic growth to avoid inflationary pressures by adjustign the money supply through the FED "window"

No matter from were the money comes from ...... more money than goods results in inflation.

BWDIK
Haim