05 March 2016
The Dow is at a two-month high, oil prices are much above their recent lows, and job creation in the US has outdone all expectations. Unfortunatey, the monetary data remain as gloomy as ever.
The Year-on-Year growth of Corrected Money Supply was 2.9% on 1 January 2016, the first reading after the rise in the Fed Funds Rate in December 2015. The data for previous months have been revised. Our last post in December showed money growth at 2.8% in October. That has now been revised to 3%. But growth is still falling steadily though at a slower pace.
If the fall continues we may expect a major crash in asset markets by the end of this year.
My book Macroeconomics Redefined explains how Corrected Money Supply is defined.