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Seems to me, CPI goes its way, and M3 moves sometimes faster, sometimes
slower... :-)
Gwenn
Ronald McEwan wrote:
> What came first, the chicken or the egg?
> Or in this case Inflation or a rising Money supply?
>
> I took the following data sets:
>
> Consumer Price Index for All Urban Consumers:
> All Items
> 1982-84=100, Not Seasonally Adjusted
> Source: U.S. Department of Labor, Bureau of Labor Statistics
>
> M3 Money Stock
> Not Seasonally Adjusted
> Billions of Dollars
> Source: H.6 Release -- Federal Reserve Board of Governors
>
> I standardized the two series (subtracted the mean and divided by the
> standard deviation) to scale the two data sets to each other.
>
> So does the CPI rise coincidentally with the Money Supply or vice a
> versa? Or is the inflation that AG is so concerned about due to his own
> action of over increasing the Money Supply?
>
> Ron McEwan
>
> ------------------------------------------------------------------------
> [Image]
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