US economy gathering steam

[Almighty Colin]

Buff,

The money supply contracted over 30% during the "Great Depression". Many economists have made the point that you flood the economy with money to expand a sluggish economy. US farmers in the late 1800s had problems because the money supply couldn't expand to accomodate their borrowing needs. Many went out of business.

What you're saying is not born out by the numbers you showed me. In fact, just the opposite.

Consider the July 1990-March 1991 contraction. The annual change in MZM was ACCELERATING coming out of the recession and continued to increase until 1994 as the economy was gaining steam.

Year MZM
1990 +3.7%
1991 +6%
1992 +10.5%
1993 +11.2%

For that matter, the MZM increased 15% during the 1981/1982 recession, a recession that lasted 16 months. In the 16 months after the recession the MZM exploded another 25% as the recovery was under way.



Last edited by Colin at Aug 11 2003, 12:26 PM