Measuring The Money Supply And Essay

Nonetheless, M2 when adjusted for changes in the price level, is still a component of the Index of Leading Indicators, and some market analysts use it to forecast economic recessions and recoveries (Federal Reserve Bank, 2008). Measuring the money supply is not without controversy. The policy of manipulating the money supply in order to control inflation is based on the idea that the more money there is in circulation, the more money there is chasing fewer goods, resulting in higher prices and vice versa. Governments have the ability to control the amount of money in circulation. They do this by stimulating demand by printing more money or by reducing demand by removing money. The process of achieving specific targets is difficult and governments frequently miss their goals, resulting in recessions and booms, all of which make up the economic cycle (Benson, 2007).

Skeptics in the financial markets maintain that the Fed stopped publishing information on M3 not...

...

Some analysts argue that by no longer reporting the total amount of money in circulation, the Fed is able to hide a huge amount of money creation, which is then used to fund the U.S. trade deficit (Benson, 2007).
As this discussion shows, the total money supply available in a given economy is difficult to determine, because of various ways of defining money and different ways of measuring it.

Works Cited

Benson, I. (2007). Jargon-free investment guide. Retrieved December 31, 2011 from: http://www.jargon-free.com/money-supply-m1-m3/30/

Federal Reserve Bank of New York. (2008). The money supply. Retrieved December 31, 2011 from: http://www.ny.frb.org/aboutthefed/fedpoint/fed49.html

WebFinance. (2011). M0. Retrieved December 31, 2011 from: http://www.investorwords.com/6571/M0. -- and my number is [HIDDEN] or [HIDDEN] -- and my number is [HIDDEN] or [HIDDEN]

Sources Used in Documents:

Works Cited

Benson, I. (2007). Jargon-free investment guide. Retrieved December 31, 2011 from: http://www.jargon-free.com/money-supply-m1-m3/30/

Federal Reserve Bank of New York. (2008). The money supply. Retrieved December 31, 2011 from: http://www.ny.frb.org/aboutthefed/fedpoint/fed49.html

WebFinance. (2011). M0. Retrieved December 31, 2011 from: http://www.investorwords.com/6571/M0. -- and my number is [HIDDEN] or [HIDDEN] -- and my number is [HIDDEN] or [HIDDEN]


Cite this Document:

"Measuring The Money Supply And" (2011, December 31) Retrieved April 26, 2024, from
https://www.paperdue.com/essay/measuring-the-money-supply-and-48725

"Measuring The Money Supply And" 31 December 2011. Web.26 April. 2024. <
https://www.paperdue.com/essay/measuring-the-money-supply-and-48725>

"Measuring The Money Supply And", 31 December 2011, Accessed.26 April. 2024,
https://www.paperdue.com/essay/measuring-the-money-supply-and-48725

Related Documents

Supply Chain Management Hypothesis defined Concepts of SCM and the evolution to its present day form Critical factors that affect SCM Trust Information sharing and Knowledge management Culture and Belief -- impact on SCM Global environment and Supply Chain management "Social" and "soft" parameter required for SCM Uncertainties This chapter aims to give an outline and scope of the study that will be undertaken in this work. The study lays out the issues faced by manufacturing organizations when it comes

Mission The mission of Money Bag Apparel can be best understood in the company’s tag line: “Clothing you like Royalty.” The idea is to make every customer feel like a million dollars when he or she is wearing Money Bag Apparel without the customer having to spend a million dollars. Vision The vision of the company is to be making others smile while wearing affordable yet good quality clothing. Money Bag Apparel wants

purchasing may be done based on the needs of the firm, billing is automatic and generated from the purchasing process; inventories are keyed in so that out-of-stock or backordered items are known immediately, transfers to and from particular departments are automatic, and at all times there is a real-time picture of the situation for management. In the case of a networked-based supply chain vendors may be evaluated based on

Managing Money Cash is the main basis of financial management in a new company. In most instances, the period between payment of suppliers and employees as well as a collection of debt from the customers is often a challenge. The solution to all these financial challenges is sound financial flow management. Managing of cash flow means delaying expenditures of cash and at the same time ensuring anyone owing the business pays

The following is a chart of what the February 2006 crash looked like, according to Bloomberg.com. Source: Bloomberg.com, 2007 According to Bloomberg, this downward crash had a dramatic effect on the U.S. market as well. When one views this chart, it is no wonder that speculators are divided about the reactions of Saudi Investors. This was a devastating crash for many and it will undoubtedly have a dramatic effect on their decisions

Article Reviews on Ethics in Supply Chain ManagementToday, supply chain management has assumed new importance and relevance as global supply networks are challenged on multiple fronts. Against this backdrop, there is a corresponding need to ensure ethical supply chain management practices. To gain some new insights into this growing need, the purpose of this paper is to provide a review of two selected peer-reviewed articles concerning ethics in supply chain