[lbo-talk] Discontinuance of M3 - Hang On

Doug Henwood dhenwood at panix.com
Wed Nov 16 14:28:31 PST 2005


boddi satva wrote:


>Again, as the M3 increases get big, I think it's entirely expected
>that the supply-side Fed would start to de-emphasize it.

I don't think the Fed is supply-side at all. In practice, they're "bastard Keynesians" (to use Joan Robinson's label for Keynesianism drained of all its semi-radical political content) most of the time. They believe that interest rates, not money, matter; that the fiscal balance is a strong influence on the economy; and that finance isn't neutral.

Doug



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