Professor Mark J. Perry's Blog for Economics and Finance
Subject to any last minute changes, I'll be a guest on CNBC's "Kudlow and Company" tonight at 7 p.m. EST to discuss some of my recent blog postings on inflation.
Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan. Perry holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University near Washington, D.C. In addition, he holds an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota. In addition to a faculty appointment at the University of Michigan-Flint, Perry is also a visiting scholar at The American Enterprise Institute in Washington, D.C.
7 Comments:
Well, your posts on the adjusted monetary base and M1 seem factually correct. So, you've established that the numerator isn't growing too fast. But, of course, infation is not driven simply by money supply, but by the ratio of growth in the money supply to the growth in value of assets.
So, once again, you're only telling half the story. Don't forget the denominator -- growth in the value of assets which back the money. Housing values have driven this most recent expansion, and housing values are falling rapidly. The denominator is no longer growing, Mark.
Coolio! Best of luck, can you get it recorded or something? I don't have cable.
Cpt. C.
it wont be hard to be the more interesting/engaging commentator with ben stein on the split-screen
check that.. BOB Stein
Well done, Mark. My question is this: why focus only on M1 to the exclusion of M2? Aren't money-market accounts increasingly "money" in the same sense as demand deposit accounts?
I suspect that many people of high and fairly-high net worth tend to keep funds in money-market brokerage accounts, and to use checking accounts only as a very-short-term transfer vehicle to pay bills.
http://www.cnbc.com/id/15840232?video=611039447&play=1
i agree, nice work. i do wonder about steins point on money demand though. it would be great to get a chart of velocity over the same time horizon. i will look, but does anyone have any suggestions for where to start?
http://www.cnbc.com/id/15840232?video=611039447&play=1
Awesome Dr. Perry, you make us proud.
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