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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (37708)	11/28/1998 5:01:00 PM
From: Joseph G.	Read Replies (1) \| Respond to of 132070

Is there any particular reason you're fixated on M2 rather than M1, M3, or, say, L? <<When the bubble-producing growth eased earlier this year, a decline in the stock market quickly ensued>> It is just the opposite - when the leveraged equity bubble stopped inflating, monetary agregates slowed their growth. <<The Fed's expansion of the money supply, lowering of interest rates, and failure to control credit>> Nobody can do three things with one tool (at the same time); at present the Fed just controls short term interest rates so as to maintain economic conditions (particularly prior to elections, and in the face of various political troubles), the money supply and the credit take care of themselves.