Changes in the money supply over time should lead to a predictable change in nominal economic output. Growth acceleration or growth retardation affect the real economy activity in short term. The money supply data is regularly released on a weekly basis. The money supply data is useful in revealing the cyclical phase of economy recovery. A larger money supply will reflect a strengthening economy.
Somehow, the money supply had lost some of its impacts since 1980s due to distortions created by newer types of bank deposits. By 1993, the Federal Reserve Bank found the money supply no longer useful for gauging the economy because of the statistical distortions.
Sources: http://ikofx.com/en/fundamentalanalysis.php
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