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To: Tommaso who wrote (2200)	6/12/1998 7:22:00 PM
From: Joseph G.	Read Replies (1) \| Respond to of 86076

T, the very simple fact remains that M3 - M2, that is <<large-denomination time deposits (in amounts of $100,000 or more), balances in institutional money funds, RP liabilities (overnight and term) issued by all depository institutions, and Eurodollars (overnight and term) held by U.S. residents at foreign branches of U.S. banks worldwide and at all banking offices in the United Kingdom and Canada. >>, grew by ~20%. The implication is that those who can buy CDs in denominations over $100,000 each, and deposit funds in institutional MMFs, did so at a rate much higher than either M3 or L grew. E.i., small depositors' cash becomes large depsitors' cash at a fast rate. It's like I say "Ko went up by $2 and GE by $1.5", but you say "it is wrong to look at KO or GE, one has to look at DJIA or S&P100 only". Why can't I look at KO and GE if I want to? Give me a break! -g- <<Maybe you should argue the point with Alan Greenspan. >> We do have a central banker among us - he posted the original link to me two days ago.

To: Tommaso who wrote (2200)	6/12/1998 7:44:00 PM
From: Joseph G.	Respond to of 86076

Got to analyze the specifics. E.g, one can see that M1 actually contracted in last 3 or 4 years, primarily because some of the components of M1 (but not all), like travelers checks outstanding, etc. decreased. OTOH, cash in circulation has grown continuously. Another example, one can look at MMF weakly changes. Often, institutional have large inflows, while retail have outflows - this often happens just after stock market "correction". Etc. Anyway, don't worry, be happy. -g-