Apr

25

The currently available data for M2, a slightly broad definition of money supply, show continued restrictive behavior. That restriction may be caused by the Fed, or it may simply be a lack of willingness of banks to lend. Regardless, the outcome means that inflation is not a risk in the foreseeable future. If anything the risk is for deflation if this continues.

Dr. Rafter is President of Mathematical Investment Decisions, a quantitative research consultancy


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