I have been reading that M3 will no longer be recognized, recorded, or used....What will be the ramifications of this decision by the Fed?
This means the Fed will be looking at economic conditions much more closely than money supply. Money supply was watched more closely for 3 decades due to the fear of inflation. Economic activity is so slow around the world that they are shifting to stimulating economic activity for now rather than worrying about inflation. The Fed Chief, Ben Bernanke, was both a student and Professor who studied the Great Depression. He knows that the recovery in the mid-1930's was cut short by the unreasonable concentration on inflation at the expense of the recovery. The result was a renewed Depression. I totally agree with his renewed emphasis.
HSchneider, I can understand trying not to panic an economy over inflation....However, to me this looks more like hiding the wealth gap. Also, in the links I provided, the author stated that although M2 and M3 run close, at the exact timing of large economic bubble formations M3 grew 2 to 3 times faster (not quoting, but somewhere in that area, you can read it if you like). M3 is the largest measure of wealth, to me not using this measure will give untrue results? I don't know this to be true, I am not an economist, but something in my gut tells me this is odd to say the least.
I agree with your thinking.
Money should represent the value of labor, and products. Different kinds of labor and products are more valuable than other kinds of labor and products. When we inject markets / aka gambling, the value of money gets confused. The value of labor becomes distorted because of the smoke and mirrors of gambling, and when you have unions which do not function properly. With all of our labor laws, unions are obsolete. They are simply the mafia by another name.
by Doug Hughes6 years ago
In 20 years, the history books will call this the 2nd depression. We are in a liquidity trap, according to Paul Krugman, nobel-prize economist. That’s central to the problem. “The term liquidity trap is used in...
by lady_love1586 years ago
http://spectator.org/archives/2011/05/1 … economics/Sadly too many here believe as Jesses Jackson Jr. does. Luckily for us they aren't in congress too. His ideas teach us a couple of lessons, that elected and...
by Evan G Rogers5 years ago
Evan Rogers here with another breaking story about how we're all doomed because our leading economists are all bozos.Here's Joseph Stiglitz making the case that technology causes unemployment, and was a major factor in...
by Alex Frias6 years ago
Question. If the Bush-era tax cuts were so popular and such the "economic reality" as it's being coined, then why did Obama fail to see this until recently. Where was his voice in favor of the Bush...
by Susan Reid4 years ago
There are some stinging indictments of both Romney and Obama in this sort of backhanded endorsement from the British "The Economist."What are your favorite/least favorite (or in the Queen's English, I suppose...
Copyright © 2017 HubPages Inc. and respective owners.
Other product and company names shown may be trademarks of their respective owners.
HubPages® is a registered Service Mark of HubPages, Inc.
HubPages and Hubbers (authors) may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others.