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To: stockman_scott who wrote (71682)	10/13/1998 12:18:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 176387

REF:Brown Brothers Harriman & Money Supply Hey that is good Scott especially considering the fact the money supply in the U.S has been steadily increasing. <-By far the most positive factor for stocks is the ongoing increase in our composite liquidity index, which is being driven by rapid increases in M2 money supply growth. I also read somewhere that in the U.S M3 has been growing in double digits for a while and so is the case in Europe thereby refuting the deflationary theory being put forth by some pundits. Considering EU members will have to harmonize their interest rates by the time the Euro debuts next year to a more acceptable level also shows that we will see further rates cuts from member countries and thereby further increasing the money supply. I don't know how the market will behave in the near future but considering the above facts it is hard to foresee a deflationary scenario taking root here in the U.S and or Europe.