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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: The Reaper who wrote (19729)	10/27/2009 5:24:19 AM
From: maceng2	1 Recommendation Read Replies (1) \| Respond to of 50210

The drop from Sept. of last year is significant The drop was caused primarily by the expansion of the adjusted monetary base. It doubled from May 08 to May 09, the multiplier halved. The expectation when the data was first mentioned was that at some point we would see the expanded money supply get into the M1 component. i.e the general economy. At that point changes in policy were expected. As yet that has not happened. The data is seasonally adjusted, and some small adjustments have been observed while I have posted the numbers. The published parameter is described as M1 MULT defined as M1/(adjusted monetary base). I gave the data a quick sanity check from the data published here. research.stlouisfed.org From the figures shown, it tells the story. So, as I see it, the monetary base has expanded, but the money has not found it's way into the general economy as yet. Do you have any thoughts on monetary velocity [money turns]/[money in circulation], and how it's measured/published?