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To: tekgk who wrote (13614)1/30/1998 9:40:00 AM
From: paul ross  Read Replies (1) | Respond to of 18056
 
US domestic CPI, however you may consider govt. statistics, has more closely followed increases in M1 than M3. The lower CPI increases of the last 2 years more closely resemble the -.3%, -4.4% M1 decreases (for 97 and 96) than the 8.4%, 7.1% increases in M3.
Too, the higher CPI increases of the early 90's are more in line with the 4.4% to 8.1% M1 rise than the M3 growth of from .4% to 1.7%.

CPI increase (M1 growth) appears to lag M3 growth by anywhere from 1 to 3 yrs. However long it takes for the recent 11% to show up, it will sure make for some "interesting" times

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