tag:blogger.com,1999:blog-8897997766931633186.post8313038601610372247..comments2024-02-14T03:21:37.506-05:00Comments on Monetary Freedom: Divisia Measures of the Quantity of MoneyBill Woolseyhttp://www.blogger.com/profile/06330232724290161369noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-8897997766931633186.post-76977675445914393712015-11-07T04:57:58.832-05:002015-11-07T04:57:58.832-05:00All I should say is thankful for providing such up...All I should say is thankful for providing such updates since it do help a lot in keeping awareness of the happening. I am regular visitor here and due to help from this I can work quite well. I am mainly doing Forex trading and that’s with OctaFX broker which too is a 11 time award winning company and have a lot of benefits for me especially with their 50% bonus that’s use able too, so it helps me perform at my best.Burnsnoreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-565592980372483362012-01-29T16:39:33.086-05:002012-01-29T16:39:33.086-05:00"I have been very critical of any measure of ..."I have been very critical of any measure of the quantity of money that includes assets that do not serve as media of exchange"<br /><br />Absolutely correct. Just check the bank debit and demand deposit turnover series.<br /><br />And sweeps distort both the volume and rate of turnover statistics. <br /><br />From the standpoint of monetary authorities, charged with the responsibility of regulating the money supply, none of the current definitions of money make sense. The definitions include numerous items over which the Fed has little or no control (e.g., M2), including many the Fed need not and should not control (currency). The definitions also assume there are numerous degrees of “moneyness”, thus confusing liquidity with money The definitions also ignore the fact that some liquid assets (time deposits) have a direct one-to-one, relationship to the volume of demand deposits (DDs), while others affect only the velocity of DDs. The former requires direct regulation; the latter simply is important data for the Fed to use in regulating the money supply.Salmo Truttahttps://www.blogger.com/profile/13910212017849902362noreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-75369491404963481712012-01-04T09:21:45.884-05:002012-01-04T09:21:45.884-05:00All very interesting. The relevant theory is in t...All very interesting. The relevant theory is in the appendixes to my new book, <i>Getting It Wrong</i>. The source of the new Divisia data is the program I now direct at the Center for Financial Stability in NY City. The program is called Advances in Monetary and Financial Measurement (AMFM). <br /><br />AMFM will include a Reports section discussing monetary conditions. Although not yet online, that section will address many of the concerns rightfully appearing in the excellent blogs, The Money Illusion, The Market Monetarist, and Monetary Freedom. The distinction between the AMFM Reports section and the AMFM Library, which is already online, is that the AMFM Library only relates to articles published in peer-reviewed journals and books, while the AMFM Reports section will relate to the public media and online blogs. <br /><br />There will be a press release when the full AMFM site is ready to go online.William A. Barnetthttps://www.blogger.com/profile/06398631656596841601noreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-75857962825189635262012-01-03T13:17:37.765-05:002012-01-03T13:17:37.765-05:00That is a fascinating chart.
As a layman, I hav...That is a fascinating chart. <br /><br />As a layman, I have also always had reservations about measures of money supply, and have always been puzzled by the $800 billion in currency probably outside the USA somewhere, or the easy way one can transfer money from any number of Chinese or other foreign banks across borders (East West Bank in Los Angeles, for example), or why food stamps are not counted as money etc etc etc. <br /><br />Now Woolsey in this post lists another whole range of questions as to what is money supply. <br /><br />My takeaway is once again we need not fixate on nominal price indices or dubious measures of money supply. We are genuflecting in the wrong direction. <br /><br />I hate to say "play to by ear" but I think it is necessary. The Fed needs to target NGDP growth by a public rules-based system, but will necessarily have to "play it by ear' on a quarter-to-quarter basis, since tracking real growth in real time is difficult. <br /><br />I suppose there is hope that in a web-based information system, we can track retail sales and certain kinds of output rather well, in real time. Evidently Greenspan watched many real output indices constantly, and we should be able to do that better than ever.Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.com