LynAlden on Nostr: Overall liquidity conditions have been holding up better than the raw monetary ...
Overall liquidity conditions have been holding up better than the raw monetary aggregates would suggest over the past year.
A lot of this is due to the Treasury offsetting some of the Fed's tightening attempts. More structurally, however, I also think this partly because over time, what we use as "money", especially savings, changes over time.
Money market accounts in the form of T-bills, reverse repos, and so forth have become increasingly part of "money" in the fiat system.
Including near-money assets, the overall money supply has held up over the past year better than the normal monetary aggregates like M2 would suggest.
A lot of this is due to the Treasury offsetting some of the Fed's tightening attempts. More structurally, however, I also think this partly because over time, what we use as "money", especially savings, changes over time.
Money market accounts in the form of T-bills, reverse repos, and so forth have become increasingly part of "money" in the fiat system.
Including near-money assets, the overall money supply has held up over the past year better than the normal monetary aggregates like M2 would suggest.