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To: Oblomov who wrote (271425)	12/19/2003 9:42:32 AM
From: Tommaso	Respond to of 436258

There is certainly no cast iron cause-and-effect relationship between monetary growth and stock market crashes, but sever past declines of the stock markets have followed periods in which rapid monetary growth gave way to a slowdown or contraction of monetary growth. For example, using this M2 series: economagic.com you see M2 growth well above 10% for much of 1986, and then falling almost to zero in June of 1987. If you look at 1971 and 1972, you see very high monetary growth that slows down in 1973. And there is the premier example of what happened in the Great Depression under the gold standard. I guess it is hard to look at statistics with an unprejudiced eye; one tends to focus on the data that supports one's argument. I still think that the abrupt deceleration at the end of that series is alarming. In case the page I reference expires (as the one you gave did), I had found "M2 Money Stock SA (Weekly)" on this page: economagic.com Thanks for the excellent data source.