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To: Crossy who wrote (88391)3/26/2010 7:26:49 AM
From: JerrymacRead Replies (1) | Respond to of 118717
 
Crossy.."Velocity of money"...Where can I find an accurate measure / index of this both past and present for various economies. Very important data point for macro economy study IMO. TIA!



To: Crossy who wrote (88391)3/26/2010 9:37:28 AM
From: SoberRead Replies (1) | Respond to of 118717
 
"...allowing the monetary base to increase at the same rate as nominal GDP..."

I agree with that... and thought I said so in my post. I think the SDR concept is based on allowing countries to tap into the SDR fund based upon their growth in GDP.

Sober



To: Crossy who wrote (88391)3/26/2010 9:48:22 AM
From: Paul KernRead Replies (1) | Respond to of 118717
 
allowing the monetary base to increase at the same rate as nominal GDP, provided the velocity of money stays constant.

When I last took an economics course, in the mid 60s, from an avowed Keynesian, the rule of thumb was the M3 need to increase slightly more than GDP to allow for more growth.

The sightly more was an undefined fudge factor determined by the Fed.

The Fed stopped publishing M3 under Greensputin but there is a good, edjucated guess published by Shadow Stats.



To: Crossy who wrote (88391)3/26/2010 11:27:17 AM
From: DineshRead Replies (1) | Respond to of 118717
 
Crossy, thanks for providing such excellent clarity!!

This also gives me a really good excuse to read up Milton Friedman.

regards
dinesh