Why Oh Why Can't We Have a Better Press Corps? Yet Another "Opinions on Shape of Earth Differ" Edition
Dangers of Extrapolation...

The Velocity of M2 in the United States

St. Louis Fed: FRED Graph

From 1959-1979 the velocity of M2 in the United States was never more than 5% away from its long-run trend...

St. Louis Fed: FRED Graph

Since 1979 the velocity of M2 in the United States has usually been more than 5% away from its long-run trend...

The first graph accounts, I think, for the rise of post-WWII monetarism in the United States. The mystery raised by the second graph is why there are still any monetarists--anyone using money stock movements to forecast spending movements--around at all...

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