>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