Merrill over Matter
Attempting to make sense of the financial world
Monday, October 18, 2010
Money Money + Money -- Money supply update
The broadest measure of money supply still reported by the Federal Reserve continues falling albeit at a decelerating pace.
While the pace of decline is moderating, broad money (M2 + Institutional Money Market Funds) continues dropping. I wonder if QE 2.0 will put a floor in the decline?
As you can see money supply growth is
something not seen during this entire data series. As a growing money supply implies a growing (real) economy this does not bode well.
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