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**Zdmlscid** · 10-28-2009, 03:48 AM

Yes, and most importantly, only one very restrictive measure of money supply.

In fact, one reason that Milton Friedman's "money supply rule" is no longer favoured by serious macro policy people is that it's become apparent that broader measures of money supply have actually become less anchored to the money supply that the Fed controls.

Glenn Beck, in this case, does have a point; there has been monetary stimulus, and that will need to be withdrawn. However, there is no reason to believe that withdrawing it will be near as painful as the early 80s were under Volcker. Simply looking at the monetary base as a predictor of inflation is retarded.

10-28-2009, 03:48 AM	#8
Zdmlscid Join Date Oct 2005 Posts 384 Senior Member	Yes, and most importantly, only one very restrictive measure of money supply. In fact, one reason that Milton Friedman's "money supply rule" is no longer favoured by serious macro policy people is that it's become apparent that broader measures of money supply have actually become less anchored to the money supply that the Fed controls. Glenn Beck, in this case, does have a point; there has been monetary stimulus, and that will need to be withdrawn. However, there is no reason to believe that withdrawing it will be near as painful as the early 80s were under Volcker. Simply looking at the monetary base as a predictor of inflation is retarded.
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