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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: tekgk who wrote (7513)	10/26/1997 6:58:00 PM
From: bearshark	Read Replies (2) \| Respond to of 94695

tekgk, I once followed these numbers religiously. Do you know what growth goals that the Fed has set for M2 and M3? Years ago, I believe they set a growth of around 9 % for M3. If that is the ballpark, that 12.7% could indicate possible inflationary pressure in the future. However, there is one other thing to consider when looking at the increase in these numbers. That is the velocity of money. I have not thought about this for quite a while, but I remember back in the late 70s or early 80s they were pumping up the money supply but nothing was happening in the economy because the velocity of money was so slow. I believe in this case they were trying to get the economy going but pumping up the money did not help as quickly as they had hoped. If you can find historical data on this subject, it may be of interest.