the money supply

And I'd love for it to be true that big increases in the money supply inevitably cause inflation, but it is not true.

By this reasoning, an increase in the money supply will also increase purchasing power of money and restore prosperity.

The money supply was basically stable with the incrementaloutstanding loans and deposits declined slightly as compared with that a year ago.

One great advantage of this plan is its simplicity, as well as the minimal change in banking and the money supply that it would require.

Fractional reserves expand the money supply, which, until the age of Keynes and Fisher, was called inflation.

But Friedman would likely have objected strongly to any attempt by the Fed to increase the money supply in the name of fighting a recession.

He would look at the growth of the money supply, though he and his followers always had trouble identifying which measure was the right one.

Using his control over the money supply, Volcker purposely plunged us into a deep recession, which is the only certain remedy.

For much of his career he said the Fed should let the money supply grow at a fixed rate.

he Federal Reserve Board would seem to have little reason to tighten the money supply and push interest rates up.

"Friedman did not believe in big discretionary changes in the money supply, " says John Taylor, a Stanford University economist.

He thought it better to replace its control over interest rates and the money supply with a mechanical rule for monetary growth.

The Fed could consider re-opening its program of buying Treasury bonds or other securities to try to increase the money supply.

He thought they should limit inflation by targeting the rate of growth of the money supply.

Some of that money gets spent again and again, producing the multiplier effect of any increase in the money supply.

At least the monetarists propose cutting rates and expanding the money supply and the Keynesians promote deficit spending.

Since the money supply would be shrinking fast, as euro deposits fled the country, this sort of paper would be accepted readily.

His view was that the government could expand the money supply during recessions and contract it in the subsequent booms.

Only if the rate of growth of the money supply exceeds the rate of growth of production will a general increase in prices ensue.

Economists with a more monetary bias , however, are worried by the sluggish growth in some measures of the money supply and bank credit .

Expansion of the money supply also temporarily lowers interest rates, which creates malinvestment as well.

Reducing new bank lending, which drives increases in the money supply, has been a key part of the government's effort to fight inflation.

Milton Friedman: Inflation is always and everywhere a monetary phenomenon. To control inflation, you need to control the money supply.

In modern economies, relatively little of the money supply is in physical currency, in the U.

That operation adds to the money supply and boosts inflation, he said.

In Europe silver shortages led to a sudden massive expansion of the money supply and the hyperinflation of the mid-17th century.

Most of these economies are built around export models, so higher growth means big surpluses of foreign exchange added to the money supply.

This is possible only by increasing the money supply and the balance sheet of the Fed itself, a practice that sooner or later must blow up.

It has always been the focus of the field of currency finance how to solve the money supply problem during the economic growth process.

He would warn, as he often did, about "erratic swings" in the money supply.

Still others involve financial information like the money supply and interest rates.

Between 1974 and 1975 , the money supply continued to increase but at a much slower pace than the price level was rising .

I published an article on May 21, saying that there was no point to control the money supply, because it cannot be done.

And in that case any further increase in the money supply will have no effect; the economy will, in fact, be in the liquidity trap.

The root cause is a massive increase in the money supply over the past two years that is still filtering through the economy.

Monetary restraint Holding down the rate of growth of the money supply.

That would make it easier for the central bank to reduce the money supply and control inflation.

The central bank uses monetary policy including reserve requirement system to regulate the money supply of a country.

The magnitude of the expansion of the money supply is reduced by the portion of securities proceeds and bank loans that are held in cash.

It took the end of the gold standard, which freed central banks to expand the money supply and reflate their economies, to spark recovery.

The money supply is now shrinking in Britain, suggesting its uncomfortably high inflation will pass.

The banks' spending increases the money supply in the form of additional currency, demand deposits, and other highly liquid assets.

Second, to control asset bubbles it is not enough to control the money supply; we must also control the availability of credit.

A growth of the money supply increases the revenue collected by the government through an inflation imposed tax on the holders of money.

As well as targeting the money supply, China's authorities also strive to set limits on credit.

The province of the Federal Reserve is the health of the banking system, generally, through regulation of the money supply, specifically.

First, he tried in a typically conservative fashion to tighten the money supply.

A resolute drive to slow growth of the money supply will stop the hemorrhaging of household savings due to inflation.

The only thing that will stop inflation is ceasing to expand the money supply.

The Great Depression was caused by Fed expansion of the money supply in the 1920s, which led to an unsustainable credit-driven boom.

Most , if not all , of the higher price of oil can be explained by the expansion of the money supply or the debasement of the dollar .

Since, in practice, the money supply is driven more by the demand for credit than reserves, this may be unnecessary.

Half of all transaction deposits do not appear in M1 [the money supply] due to retail deposit sweeping.

Mr. Yan agrees: 'We have too much money' after the Chinese government has expanded the money supply over the last three years.

That money is hoarded and is not used to expand credit and the money supply, and so does not lead to inflationary pressures.

Previously, it was assumed that all financial activity would ultimately be captured by fluctuations in the money supply.

As long as the Fed is responding to demand, an increase in the money supply is not inflationary.

Expansionary Monetary Policy - Policy enacted by the Fed that increases the money supply and thus increases output.

Similarly, central-bank intervention to hold the baht down by buying dollars would also boost the money supply.

Second, the Federal Reserve is boosting the money supply by creating commercial bank reserves, the modern day equivalent of printing money.

Contractionary Monetary Policy - Policy enacted by the Fed that reduces the money supply and thus reduces output.

Second, to control asset bubbles it is not enough to control the money supply; you must also control credit.

As long as the money supply is not shrinking there is no way one can have deflation.

This decreases the money multiplier, and therefore, the money supply for a given level of Central Bank money.

This kind of shock threatens to upset the domestic economy by causing a surge or plummeting of the money supply .

This absence of a central monetary authority to control the money supply is what many find exciting about Bitcoins.

Revenue, or spending power, which a government acquires by printing money. The act of printing money increases the money supply at . . .

The statutory deposit reserve rate for the current round of inflation in controlling, the money supply was failure, too.

Grant's monetary policy of contracting the money supply (again, also thereby raising interest rates) made matters worse for those in debt.

When a bank makes a loan from its reserves, the money supply increases.

It proceeded to weaken the currency by greatly expanding the money supply and promising to take "further measures" if necessary.

Rather than entrust the money supply to a guru or a professor, money is limited by the quantity of bullion.

This is the broadest measure of the money supply, cash in the system, bank accounts, jumbo CDs, institutional money funds. . .

On Tuesday, it said it would increase the money supply to make the MBS purchases, effectively easing monetary policy further.

Combined with sharp movements in the money supply, the consequence is volatile food prices that carry the CPI along in their wake.

A sensible solution to Venezuela's over expansion would require reining in spending and the growth of the money supply.

Yet the ECB has permitted nominal GDP and the money supply (supposedly, the "second pillar" of its policies) to stagnate.

Results show that the money supply, interest rates and other virtual economic variables have significant impact on real estate price.

Today's chart shows how severely the money supply and inflation are going in fiercely opposite directions.

the expansion of the money supply in the 1920s that led to an unsustainable credit-driven boom.

The lower the desired cash reserves ratio, the more deposits banks create against given cash reserves and the larger is the money supply.

Governments that control central banks have often used their power to increase the money supply and create inflation.

A sudden capital inflow threatens to raise the money supply that can be lent, driving down interest rates and expanding spending.

Making the yuan more valuable could also reduce the need for the money supply to grow, and thereby slow inflation.

If the jump in the money supply were excluded, the board's index would have dropped sharply, economists said.

Mr. Bernanke has made it clear that his policy is to inflate the money supply.

Fisher showed that good management of the money supply could contribute to stability.

Increasing liquidity by expanding the money supply is his drug of choice to prescribe to an ailing economy.

When the Federal Reserve jiggers with the money supply, it is as likely to exacerbate problems as solve them.

"The money supply is too large, " said Andy Xie, an economist based in Shanghai who formerly worked at Morgan Stanley.

The money supply has climbed by 50% in the last two years.

"The money supply is too large, " said Andy Xie, an economist based in Shanghai who formerly worked at Morgan Stanley.

Milton Friedman is best known for his work on the idea that governments can slow inflation by shrinking the money supply.

The central bank purchases foreign exchange that enters the country by printing new yuan, adding to the money supply.

The risks are obvious: bond purchases expand the money supply, potentially leading to inflation.

Indeed, during the current crisis, the monetary base has become disconnected from the money supply in all big economies.

And M2, a measure of the money supply that includes bank deposits as well as money-market mutual funds, has increased by 11%.

The goal is to increase the money supply, by swamping the Fed funds market with liquidity.

" In the money supply and credit growth more tight situations, " there will always be good formidable.

In 1982, the inflation rate fell substantially below the growth rate of the money supply.

He called for strict rules defining a set rate of growth in the money supply from year to year.

held in bank vaults is not counted as part of the money supply.

Today it is less clear that the money supply is out of control.

Even though the money supply is expanding at a fairly generous rate it's still not enough.

He did nothing to avert it, feeling that reducing the money supply was too blunt a tool.

A move for the Chinese authorities to regain control over the money supply and over policies to ward off inflation.

Monetary policy : The decisions a monetary authority makes to manage the money supply.

Yet tight controls on the money supply have kept inflationary pressure lower than feared.

The money supply will now be determined by the appetites of global investors.

The Fed toyed with nominal GDP in the past when it was searching for something more stable to target than the money supply.

In some economies the authorities use the money supply as a target or instrument of monetary policy.

Acting as lender of last resort, the Austrian central bank increased the money supply by 20% virtually overnight.

First, these institutions provide the bulk of the money supply.

That bolsters the QE case. Still, the money supply is growing, not shrinking, Mr. Lucas notes.

The main reason for this phenomenon is that the money supply is endogenous and the central bank is losing its controllability.

Beijing is raising interest rates and shrinking the money supply. Brazil?

They ignore, or are not aware, that the money supply is what is driving inflation, "demand, " and GDP growth.

However, the monetary base is a part of the money supply.

According to Krugman, increasing the money supply will fail to stimulate the economy in depression conditions.

Therefore, when the Fed increases the money supply rapidly, the result is a high rate of inflation.

The open market operation refers to the buying and selling of government securities by a central bank in order to control the money supply.

This will increase the difference between high powered money and the money supply.

The inflation cannot cause the money supply increase, the two assume the one-way causation.

The increase in the money supply thus stimulates the economy.

Yes, we're expanding the money supply and stock prices have gone up accordingly.

The Federal Reserve has even stopped publishing M3, a broad measure of the money supply.

Banks can influence the quantity of demand deposits in the economy and the money supply.

Indicator of the effect that the money supply has on the economy.

In an increase in the money supply.

The money-supply figures published on February 27th lend support to the ECB's more cautious stance.

In a fractional reserve banking system, a loan that can't be repaid reduces the money supply by as much as $1 million.

Today, virtual money dominates the money supply.

But the large amounts of dollars it was forced to buy were fuelling excessive growth in the money supply and hence inflation.

A change in the money supply brings a corresponding.

to control the money supply and to supervise banks and banking practices in the country .

The money supply is not changing in any significant way.

As this increases, the money supply, inflation jacks up.

That these actions expand the money supply is secondary.

M2, a measure of the money supply, has risen more than three times in this period.

This increase in the money supply fed inflation.

As far as the facts of China is concerned, it is very insufficient taking the money supply as mediate target for monetary policy.

His solution was a monetary rule, such as a fixed growth rate in the money supply.

When the money supply increases, people have more money to spend, and demand for goods and services increases.

His choice was that China go to fiat money, control the money supply tightly, and let the exchange rate float.

If the money supply increases by 7 percent and the price level increases by 4 percent, then what is the change in nominal GDP and real GDP?

On the other hand, if the money outflow cannot be offset, the resulting contraction of the money supply will cut national income.

A decrease in the money supply, causing a sharp fall in prices.

I've seen guesses from perfectly sane people, based on the money supply and other measures, suggesting gold might go even higher.

In fact, by issuing loans, banks influence the money supply.

One thing the government does do, however, by increasing the money supply is discourage saving.

Broader measures of the money supply haven't grown that much because the money isn't being lent on.

Public debt held by banks would set the money supply.

Since 1996, The People's Bank of China has taken the money supply as the intermediate target of monetary policy.

When the PBOC creates yuan, it expands the money supply.

We have a Federal Reserve that dictates the money supply and what the interest rates should be.

The money supply, measured by currency plus demand deposits (M1), dropped by 25%.

The money supply collapsed, resulting in a 24 percent drop in the consumer price index from 1929 to 1933.

The money supply has increased 28% over the past year.

Friedman proposes that the Federal Reserve have a consistent rule to increase the money supply by 3-5% annually.

A property bubble emerged because the money supply was rising rapidly and didn't go into CPI related goods and services.

Therefore, we should strengthen macro control of the money supply and return, and it can be solved by the input-output method.

The money supply is a policy variable that is controlled by the Fed.

That is, they are total bank deposits and, as such, are an important part of the money supply.

A $100, 000 loan that is repaid reduces the 'money' supply by $100, 000 (unless it is lent out to someone else).

It is therefore this expansion in the money supply, not an artificially low currency per se that is creating price inflation in China.

An Empirical Study of the Money Supply and the Price of the Stock Market

The determination of the money supply depends in part on the behavior of commercial bank

Third, in the short-term, the money supply is an important source of stock price fluctuation;

Choosing the Intermediary Target of Our Monetary Policy according to the Money Supply

Application of Seasonal Adjustment Method to the Money Supply

Judging from the money supply, the supply volume and coverage are growing year by year;

Tools of the Trade: The Federal Reserve and the Money Supply

adequate amount of the money supply

The Fed controls the money supply indirectly

The Money Supply And the Balance of Payment in Opening Economy

Not part of the money supply

Control of the money supply

On the Demand for Money and the Money Supply Full

Interest Rate and the Money Supply

On the Validity of the Money Supply as Intermediate Goal of Monetary Policy in China

Money and the money supply