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To: Joseph G. who wrote (2169)	6/12/1998 11:08:00 AM
From: Tommaso	Read Replies (1) \| Respond to of 86076

"M3 includes M2, the growth in M3 minus M2, that is, in what is added to M2 to make M3, is higher than growth of M3. " That's not a meaningful way to calculate anything. You are taking the increment in a figure (M3) that is always much larger than M2, and then saying that M2 has grown 20% because M3 has grown an amount equal to 20% of M2. That would be like claiming that the GNP of Canada had increased 20% because the entire North American economy had increased by 5% and then divide the amount of that increase by the Canadian GNP. M2 has increased around 8% recently, and M3 around 11.4% You can't take things that are included in M3 that are not included in M2 and use them to calculate the growth in M2. The true figures themselves are startling enough, and to introduce sophistical exaggerations does not help matters.