Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: MrGreenJeans who wrote (4826)	5/3/1998 10:04:00 PM
From: Investor2	Read Replies (1) \| Respond to of 42834

Re: "M1, M2, M3 and L" What is "L?" Thanks, I2

To: MrGreenJeans who wrote (4826)	5/4/1998 12:20:00 AM
From: michael meyers	Read Replies (1) \| Respond to of 42834

Mr.GreenJeans, Not every one would agree with your explanation, however, I understand it is debatable, i.e. Generally speaking, an increase in the money supply decreases rates and a decrease in the money supply increases rates. Actually vice-versa. An increase in the money supply signals future inflation which causes the market to bid up rates. However, over the short term, an increase in the money supply does exactly as you say because of short term supply/demand effects. Absolutely, many monetary economists believe there is a direct effect between monetary growth and GDP growth. No, they don't. Monetary economists believe monetary growth affects inflation, but has no effect on real GDP growth. relatively simple terms there is no better book written on the subject than Paul Samuelson's Economics. Robert Barro's book is better. Regards, Michael