M2 vs GDP

Quote of the day

“In the U.S., money supply is advancing by 8%, based on year-over-year comparisons of so-called M2 as of June. That’s four times the annualized rate of economic growth for the first half of this year, and double the pace of expected GDP expansion for 2004. The only question is when will higher inflation arrive and, more importantly, will the Fed exhibit the discipline, formerly elusive in central banking history, to turn off the monetary spigot at the right time?”

The Capital Spectator, Wednesday, August 13, 2003

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