Tuesday, May 12, 2009

The M3 and M2 strong inflation link

Some key statistics: "M3 is back
We did some sleuthing and data extraction and put M3 back together from various weekly Federal Reserve reports that are still available. Here is our article on M3b, which details our work and notes the sources for the data.
Finally and to put M3 into proper perspective with inflation (as measured by CPI without lies), the M3 and M2 strong inflation link is virtually unquestionable. The longer term inflation picture is clear, although M2 shows a pause and likely temporary disinflation as of 2008."

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